Salesforce vs Intuit Which Offers More Value?

Salesforce and Intuit are two leading companies in the technology industry, both offering a range of cloud-based software solutions. Salesforce is known for its customer relationship management (CRM) platform, while Intuit is famous for its financial management tools like QuickBooks. In terms of stock performance, Salesforce has seen steady growth due to its strong recurring revenue model and innovative product offerings. On the other hand, Intuit's stock has also performed well thanks to its consistent financial results and market dominance in the small business sector. Investors looking to capitalize on the growth potential of the technology industry may find both Salesforce and Intuit stocks to be attractive options.

Salesforce or Intuit?

When comparing Salesforce and Intuit, 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 Intuit.

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 Intuit has a dividend yield of 0.69%. 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, Intuit reports a 5-year dividend growth of 14.59% year and a payout ratio of 34.90%.

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 Intuit's P/E ratio at 65.90. 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 Intuit's P/B ratio is 10.59.

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 Intuit's is 1.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Salesforce's ROE at 9.58% and Intuit's ROE at 16.67%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $325.25 for Salesforce and $682.30 for Intuit. Over the past year, Salesforce's prices ranged from $211.76 to $344.87, with a yearly change of 62.86%. Intuit's prices fluctuated between $523.32 and $698.96, with a yearly change of 33.56%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.