Salesforce vs Smartsheet Which Is More Favorable?

Salesforce and Smartsheet are both prominent players in the tech industry, providing cloud-based solutions that cater to the needs of businesses of all sizes. While Salesforce specializes in customer relationship management (CRM) software, Smartsheet offers project management and collaboration tools. Both companies have been experiencing significant growth in recent years, attracting the attention of investors looking to capitalize on the booming tech sector. Let's delve deeper into the financial performance and potential of Salesforce vs Smartsheet stocks to determine which may be the better investment option.

Salesforce or Smartsheet?

When comparing Salesforce and Smartsheet, 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 Smartsheet.

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 Smartsheet 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, Smartsheet 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 58.49 and Smartsheet's P/E ratio at -182.46. 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 Smartsheet's P/B ratio is 11.53.

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 Smartsheet's is -0.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Salesforce's ROE at 9.58% and Smartsheet's ROE at -6.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $325.25 for Salesforce and $55.88 for Smartsheet. Over the past year, Salesforce's prices ranged from $211.76 to $344.87, with a yearly change of 62.86%. Smartsheet's prices fluctuated between $35.52 and $56.55, with a yearly change of 59.21%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.