Yext vs Salesforce Which Is More Attractive?

Yext and Salesforce are two well-known companies in the tech industry that have been gaining attention from investors. Both companies offer software solutions for businesses to manage and optimize their online presence. Yext specializes in digital knowledge management, while Salesforce is known for its customer relationship management software. Investors are constantly comparing the performance of these two stocks to determine which one presents a better investment opportunity. With both companies showing strong growth potential, it's important for investors to carefully analyze the financials and future prospects of Yext and Salesforce stocks.

Yext or Salesforce?

When comparing Yext and Salesforce, 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 Yext and Salesforce.

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. Yext has a dividend yield of -%, while Salesforce has a dividend yield of 0.33%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Yext reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Salesforce reports a 5-year dividend growth of 0.00% year and a payout ratio of 14.69%.

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 Yext P/E ratio at -161.81 and Salesforce's P/E ratio at 44.37. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Yext P/B ratio is 6.61 while Salesforce's P/B ratio is 5.96.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Yext has seen a 5-year revenue growth of 0.48%, while Salesforce's is 1.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Yext's ROE at -4.42% and Salesforce's ROE at 13.35%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $8.44 for Yext and $361.09 for Salesforce. Over the past year, Yext's prices ranged from $4.29 to $8.60, with a yearly change of 100.47%. Salesforce's prices fluctuated between $212.00 and $369.00, with a yearly change of 74.06%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.