Salesforce vs Fiserv Which Is More Favorable?

Salesforce and Fiserv are two prominent companies in the tech and financial services industries, respectively. Both companies have seen significant growth in recent years, with Salesforce dominating the CRM market and Fiserv leading in fintech solutions. Investors often compare the performance of Salesforce and Fiserv stocks to make informed investment decisions. Salesforce has shown consistent growth and innovation, while Fiserv has a strong presence in the financial services sector. However, both companies face competition and market volatility, making their stocks subject to fluctuations.

Salesforce or Fiserv?

When comparing Salesforce and Fiserv, 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 Salesforce and Fiserv.

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. Salesforce has a dividend yield of 0.47%, while Fiserv has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Salesforce reports a 5-year dividend growth of 0.00% year and a payout ratio of 13.71%. On the other hand, Fiserv reports a 5-year dividend growth of 0.00% year and a payout ratio of 36.01%.

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 Salesforce P/E ratio at 58.49 and Fiserv's P/E ratio at 40.24. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Salesforce P/B ratio is 5.72 while Fiserv's P/B ratio is 4.44.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $325.25 for Salesforce and $212.56 for Fiserv. Over the past year, Salesforce's prices ranged from $211.76 to $344.87, with a yearly change of 62.86%. Fiserv's prices fluctuated between $121.07 and $215.45, with a yearly change of 77.95%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.