Freshworks vs Salesforce

Freshworks and Salesforce are both renowned CRM software providers that have seen significant growth in their stock performance in recent years. While Salesforce has established itself as the market leader in cloud-based CRM solutions, Freshworks has been gaining traction with its user-friendly platform and affordable pricing. Investors are closely watching both companies as they compete for market share and continue to innovate in the rapidly evolving CRM industry. Let's dive deeper into the comparison of Freshworks vs Salesforce stocks to see which one might be the better investment opportunity.

Freshworks or Salesforce?

When comparing Freshworks 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 Freshworks 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. Freshworks has a dividend yield of -%, while Salesforce has a dividend yield of 0.42%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Freshworks reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 Freshworks P/E ratio at -33.63 and Salesforce's P/E ratio at 49.36. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Freshworks P/B ratio is 3.09 while Salesforce's P/B ratio is 4.82.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Freshworks has seen a 5-year revenue growth of -0.73%, while Salesforce's is 1.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Freshworks's ROE at -9.49% and Salesforce's ROE at 9.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.29 for Freshworks and $288.00 for Salesforce. Over the past year, Freshworks's prices ranged from $10.81 to $24.98, with a yearly change of 131.04%. Salesforce's prices fluctuated between $193.68 and $318.71, with a yearly change of 64.55%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.