Fiserv vs Salesforce Which Is More Lucrative?

Fiserv and Salesforce are two major players in the financial technology and customer relationship management industries, respectively. Both companies have seen positive growth in their stock prices in recent years, with Fiserv focusing on financial services technology solutions and Salesforce providing cloud-based software for sales, marketing, and customer service. Investors are keenly watching how these companies navigate the changing business landscape and capitalize on emerging trends in technology and customer experience.

Fiserv or Salesforce?

When comparing Fiserv and Salesforce, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Fiserv and Salesforce.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Fiserv has a dividend yield of -%, while Salesforce has a dividend yield of 0.47%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Fiserv reports a 5-year dividend growth of 0.00% year and a payout ratio of 36.01%. On the other hand, Salesforce reports a 5-year dividend growth of 0.00% year and a payout ratio of 13.71%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Fiserv P/E ratio at 40.09 and Salesforce's P/E ratio at 58.39. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Fiserv P/B ratio is 4.43 while Salesforce's P/B ratio is 5.71.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Fiserv has seen a 5-year revenue growth of 1.17%, while Salesforce's is 1.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Fiserv's ROE at 10.69% and Salesforce's ROE at 9.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $213.50 for Fiserv and $338.75 for Salesforce. Over the past year, Fiserv's prices ranged from $121.87 to $215.45, with a yearly change of 76.79%. Salesforce's prices fluctuated between $212.00 and $348.86, with a yearly change of 64.56%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.