Salesforce vs HubSpot Which Is a Smarter Choice?

Salesforce and HubSpot are two leading companies in the customer relationship management (CRM) and marketing automation industries. Both companies have seen significant growth in recent years, with their stocks performing well on the market. Salesforce, a larger and more established player, offers a comprehensive suite of CRM solutions, while HubSpot specializes in inbound marketing and sales software. Investors are closely monitoring these two companies as they continue to innovate and expand their market reach.

Salesforce or HubSpot?

When comparing Salesforce and HubSpot, 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 HubSpot.

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 0.34%, while HubSpot 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 14.69%. On the other hand, HubSpot reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 43.43 and HubSpot's P/E ratio at -2655.66. 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 5.83 while HubSpot's P/B ratio is 21.16.

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 HubSpot's is 2.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Salesforce's ROE at 13.35% and HubSpot's ROE at -0.91%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $352.52 for Salesforce and $721.21 for HubSpot. Over the past year, Salesforce's prices ranged from $212.00 to $369.00, with a yearly change of 74.06%. HubSpot's prices fluctuated between $434.84 and $762.47, with a yearly change of 75.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.