Salesforce vs Zuora

Salesforce and Zuora are both prominent players in the technology industry, with a focus on customer relationship management (CRM) and subscription billing software, respectively. Salesforce, founded in 1999, has experienced steady growth and is considered a leader in the CRM market. On the other hand, Zuora, established in 2007, specializes in helping companies manage subscription-based services. Both companies have demonstrated strong performance in the stock market, but Salesforce has a larger market share and a longer track record of success compared to Zuora.

Salesforce or Zuora?

When comparing Salesforce and Zuora, 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 Zuora.

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 0.42%, while Zuora 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, Zuora 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 49.36 and Zuora's P/E ratio at -28.92. 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 4.82 while Zuora's P/B ratio is 7.12.

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 Zuora's is 0.84%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Salesforce's ROE at 9.58% and Zuora's ROE at -32.01%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $288.00 for Salesforce and $8.95 for Zuora. Over the past year, Salesforce's prices ranged from $193.68 to $318.71, with a yearly change of 64.55%. Zuora's prices fluctuated between $7.05 and $10.85, with a yearly change of 53.90%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.