Salesforce vs Twilio Which Performs Better?

Salesforce and Twilio are two leading tech companies in the cloud computing and communication technology sectors, respectively. Both companies have seen strong growth in recent years, with Salesforce dominating the customer relationship management market and Twilio revolutionizing the way businesses communicate with their customers. Investors are closely watching the performance of both stocks as they continue to innovate and expand their market reach. Understanding the key differences and similarities between Salesforce and Twilio stocks can help investors make more informed decisions about their investment portfolios.

Salesforce or Twilio?

When comparing Salesforce and Twilio, 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 Twilio.

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 Twilio 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, Twilio 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 Twilio's P/E ratio at -38.88. 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 Twilio's P/B ratio is 2.18.

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 Twilio's is 2.39%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Salesforce's ROE at 13.35% and Twilio's ROE at -5.12%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $352.52 for Salesforce and $111.77 for Twilio. Over the past year, Salesforce's prices ranged from $212.00 to $369.00, with a yearly change of 74.06%. Twilio's prices fluctuated between $52.51 and $116.43, with a yearly change of 121.73%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.