Salesforce said it will acquire Slack in an all-stock deal valued at $27.7 billion, as the company aims to expand its footprint more into collaboration and workflows. Adobe Stock. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Adobe's revenue and adjusted earnings rose 24% and 16%, respectively, in fiscal 2019 (which ended last November). For the first quarter, Salesforce expects its revenue to rise 30%-31% annually, but for its earnings to dip 24%-25%. Search for: salesforce stock competitors. We see Adobe’s stock declined from levels of around $44 in October 2007 (the pre-crisis … Start a 14-day free trial to Morningstar Premium to unlock our take on CRM. Shares are within 5% of a 147.17 cup-with-handle entry. No. Along with healthy and sustained profits, this implies that free cash flow (FCF) is positive and around (or above) $1 billion mark every year for many years. In case consistent profitable growth is on your mind, stay with Adobe. Try risk-free today. This table compares salesforce.com and Adobe's net margins, return on equity and … It is listed on the New York Stock Exchange and is a constituent of the S&P 500 index. Adobe's stock advanced nearly 20% this year as its Creative Cloud services, marketing services, and analytics tools locked in mainstream and enterprise customers. The Motley Fool recommends Adobe Systems and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft. It also held well to its consistent 80%-plus gross margins over the last 10 years, a remarkable feat considering how software biggies like Microsoft have witnessed a sharp plunge. Naturally, the company's third-quarter guidance (which looks good on paper) is unconvincing. Salesforce (NYSE: CRM) reported a gross margin of 68%, and DocuSign (NASDAQ: DOCU) showed a gross margin of 73.8%. With a Price/Sales ratio of 8.28x, Salesforce trades at a significant discount to Adobe (13.59x). If you're concerned with growth plus profitability, stick to Adobe for gains. Both companies are well-insulated from the current macro headwinds, but is either stock worth buying at these elevated levels? This article is commentary by an independent contributor. Pricing/cost comparison. Ron Miller 2 years Marketing analytics is an increasingly complex business. While it registered $26 billion in combined sales over the past 10 years, it couldn't generate profits regularly (barring initial years). Both Salesforce.com and Adobe offer zero dividends, unlike mature tech companies like Apple (AAPL) - Get Report . As an Adobe ADBE shareholder, ... More specifically, Salesforce’s stock is up 16% — the NASDAQ NDAQ is up 22% — in the year ending June 12. Want to be alerted before Cramer buys or sells AAPL? Show full articles without "Continue Reading" button for {0} hours. December 13, 2020 Uncategorized Uncategorized Download as PDF. Search Adobe Stock for millions of royalty-free stock images, photos, graphics, vectors, video footage, illustrations, templates, 3d assets, editorial assets and high-quality premium content. Both ServiceNOW and Salesforce have important enterprise software solutions that may be pivotal for businesses working their way through the economic aftermath of the coronavirus pandemic. It's been expanding that ecosystem with its acquisition of e-commerce services provider Magento and enterprise deals with Microsoft (NASDAQ: MSFT) and ServiceNow (NYSE: NOW). S&P 500 futures sank 0.4% vs. fair value. The stock is about 4% down year-to-date (YTD), while Adobe is up 10%-plus. Salesforce was one of the earliest entrants to the SaaS space, but these days, there is heavy competition. In the first quarter, which ended on Feb. 28, Adobe's revenue rose 19% annually as its adjusted earnings grew 33%. Adobe's Digital Media and Digital Experience revenue grew 22% and 15% annually, respectively, even though the former faced some softness in China and the latter dealt with some "slippage" in deals near the end of the quarter. See more Multichannel Marketing Hubs companies. They assist with keeping data organized, uniting all business units, and generating profits. Salesforce arguably faces more direct competition in the CRM market, and the recent resignation of co-CEO Keith Block -- who told investors COVID-19 was "not affecting" its business last quarter -- raises some concerns about its future leadership. Salesforce stock price target cut to $300 from $325 at UBS Dec. 2, 2020 at 12:50 p.m. Salesforce Marketing Cloud by Salesforce Adobe Campaign by Adobe Visit Website . Adobe … Its subscription and support revenue accounted for 94% of its top line last quarter, while the rest came from professional services and other businesses. Salesforce stock stock took a big hit in March 2020 like other software companies as Covid-19 spread globally. 1: Earnings Growth -- Winner Takes All. Investors are currently paying premiums for Adobe and Salesforce. That number exceeds the annual sales garnered by database software kingpin Oracle in past year ($37.1 billion). SAP SE could barely improve gross margins in the last decade. *Stock Advisor returns as of April 16, 2020, Like us on Facebook to see similar stories, Georgia pastor and Trump adviser tests positive for COVID-19, Stimulus latest: Hill leaders reach $900 billion Covid relief deal in breakthrough following partisan disputes. Salesforce bundles these tools into its core CRM platform to widen its moat against rivals like SAP (NYSE: SAP), Microsoft, and Adobe. At the time of publication, the author held no positions in the stocks mentioned. Adobe (NASDAQ: ADBE) and Salesforce (NYSE: CRM) are two cloud computing stocks that have outperformed the broader market throughout the COVID-19 crisis. Subscription and support revenue grew by the double-digits across all four of its core businesses, led by the 57% growth of its Salesforce Platform and other services segment. If earnings improve, FCF will only keep pushing forward. No. Salesforce splits its business into four main segments: the Salesforce CRM Platform and other services (29% of its revenue last quarter), the Sales Cloud (25%), Service Cloud (25%), and Marketing & Commerce Clouds (14%). FILTER BY: Company Size Industry Region <50M USD 50M-1B USD 1B-10B USD 10B+ USD Gov't/PS/Ed. Salesforce.com earnings story combined with its financial strength can hardly compare to Adobe's. As of this writing, Adobe trades at 39 times forward earnings, while Salesforce has a forward P/E of 56. View Details. Without that dividend ballast, what could be an important factor is balance sheet strength and financial metrics. Adobe on the other hand, boasts a profitable story, although sales growth has been moderate. Salesforce was down almost 0.80% to … Adobe wins in the operating profit margin department -- much of that due to Salesforce's heavy spending on acquisitions. But both stocks currently trade … Adobe stock fell 0.4% to 494.63 on Friday, but rallied 10.6% for the week. Salesforce claims COVID-19 mainly disrupted its airline, hospitality, and Chinese customers -- but its gains in other markets, which shifted toward cloud-based CRM solutions as brick-and-mortar stores closed down, easily offset those declines. If growth is all that matters, Salesforce.com is your pick. The Motley Fool owns shares of and recommends Microsoft, Salesforce.com, and ServiceNow, Inc. Adobe generated 70% of its revenue from its Digital Media segment, which houses its Creative and Document cloud products, last quarter. But Adobe Stock Fared Worse During The 2008 Downturn. The stock is about 4% down year-to-date (YTD), while Adobe is up 10%-plus. Adobe (ADBE) surged this 12 months as Individuals working from dwelling throughout the pandemic gave the software program large a subscriptions and earnings increase. Consensus Wall Street estimates expect 7% upside for Adobe and 8% upside for Salesforce. The company's flagship product is a customer relationship management (CRM) system designed for businesses of all sizes and industries worldwide. Compare Adobe vs Salesforce BETA See how working at Adobe vs. Salesforce compares on a variety of workplace factors. Salesforce Stock. Learn more now. Starting Price: Not provided by vendor $9.99/month/user. Salesforce stock rallied 2.4% to 140.09, back above its 50-day line after hitting resistance earlier in the week. Salesforce isn't consistently profitable by GAAP measures and usually doesn't buy back any shares. Salesforce's revenue and adjusted earnings rose 26% and 79%, respectively, in fiscal 2020 (which ended on Jan. 31). I work exclusively with the Adobe Marketing Cloud, but will provide my unbiased opinion as best I can. While we don't want to ring alarm bells, many on Wall Street have lowered their expectations. As of this writing, Adobe trades at 39 times forward earnings, while Salesforce has a forward P/E of 56. David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Salesforce.com wasn't one of them! Despite the pullback, the the stock trades at nearly 59-times forward earnings, among the most expensive offering tough competition to Amazon.com (which has exposure to cloud via AWS). ET by Tomi Kilgore ServiceNow is emerging as a cloud-software superpower For the full year, Salesforce expects its revenue to rise 23%-24% and for its adjusted earnings to grow 6%. Adobe is trading at a lower price-to-earnings ratio than salesforce.com, indicating that it is currently the more affordable of the two stocks. Salesforce's stock rose nearly 10% as its market-leading customer relationship management (CRM) tools faced only limited disruptions from COVID-19. Adobe stock has also outperformed Salesforce over the past five years. Investors interested in Salesforce should wait for the stock to cool off a bit before pulling the trigger. The Creative Cloud -- which includes over 20 apps for photography, video, and web design -- generated 87% of the segment's annualized recurring revenue at the end of the quarter. To this end, Find out if CRM (XNYS) is the best investment for you. Receive full access to our market insights, commentary, newsletters, breaking news alerts, and more. See how Cramer rates the stock here. ServiceNOW vs Salesforce Stock: The Bottom Line. Compare Adobe Creative Cloud vs Salesforce Platform. Granted, FCF has increased over the past two-to-three years, but Salesforce.com's lack of profitability, raises the question about this rising free cash flow. Adobe, on the other hand, at around 27 times forward price-to-earnings ratio is still great value. Adobe, on the other hand, at around 27 times forward price-to-earnings ratio is still great value. Shares hit an intraday low of 115.29 on March 18, a correction of roughly 40%. Salesforce and Adobe shares both dropped in Monday’s session as investors sold off stocks in fear of the spreading coronavirus. ... ORCL) and Salesforce (NASDAQ: CRM), so that’s a good excuse to sell, too. Billings' growth, a key metric for Salesforce.com, indicates signs of a slowdown. The recent weakness in Salesforce.com is a great opportunity to get in at bargain valuations. That’s part of the reason markets have been so bullish on Adobe … Wall Street expects its revenue to rise 16% this year with 24% earnings growth -- which suggests the pandemic will only marginally impact its core business. You need to put yourself on solid ground. Adobe has lower revenue, but higher earnings than salesforce.com. Profitability should then elude Salesforce.com, which apparently tried to outbid Microsoft for LinkedIn. For overall quality and performance, Adobe Marketing Cloud scored 8.9, while Salesforce Marketing Cloud scored 9.3. It also has an amount of debt (even after exhausting cash). Share. But if I had to choose one over the other, I'd pick Adobe for its lower valuation, stable profits, and better-diversified business. Netflix (NFLX), Adobe Systems (ADBE), Salesforce.com (CRM), Workday (WDAY) and ServiceNow (NOW) share similar bullish traits. Unlike with the other top stocks cited here, Salesforce’s RS line is a bit off … Investors looking to add an SaaS stock to their portfolios have a difficult decision to make. The best stock depends on your investment goals. Adobe has been roughly spending somewhere in the range of $100 million-to-$300 million on capital expenditures every year. RSU amount to stock conversion at Salesforce My offer letter states that the RSU grant amount will be converted to number of stocks as follows: $ amount divided by the average closing sale price of one share of salesforce common stock as reported on the NYSE during the two calendar months preceding the month in which the RSUs will be granted. The rest of Adobe's revenue mainly came from its Digital Experience business, which hosts enterprise-facing analytics, marketing, and e-commerce tools. 2: Balance Sheet Basics -- Powering the Way Through. Adobe and Salesforce announce Customer Data Platforms to pull data into single view. A blistering financial storm is about to hit our shores. That's right -- they think these 10 stocks are even better buys. Meanwhile, Adobe's stock has surged nearly 60% just since Slack's public debut. Let's see why Adobe outperformed Slack, and if it will remain the faster-growing stock for the foreseeable future. Analysts expect Adobe to shift to a higher trajectory of EPS growth, and offers a 28%-plus EPS growth rate for the next 5 years. All salaries and reviews are posted by employees working at Adobe vs. Salesforce. Our exclusive system will give you a brief look at the general rating of Adobe Marketing Cloud and Salesforce Marketing Cloud. Action Alerts PLUS is a registered trademark of TheStreet, Inc. survivor stocks in a turbulent, risky broader market, 29.88% earnings-per-share (EPS) growth per annum, Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio, great opportunity to get in at bargain valuations, the stock trades at nearly 59-times forward earnings, I'll show you how to protect yourself and prosper when you click here. Together, in five years Salesforce.comand Adobe have cumulatively generated over $40 billion in revenues. Adobe vs Salesforce + OptimizeTest EMAIL PAGE. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*. Dow Jones futures fell 0.4%. Its acquisition of Tableau, which closed last August, also boosted its revenue and earnings. Salesforce is the world's largest CRM company. On the other hand, for user satisfaction, Adobe Marketing Cloud earned 98%, while Salesforce Marketing Cloud earned 97%. Microsoft vs. Salesforce: Which Stock is a Better Buy MSFT – Cloud computing has become a necessity in the wake of the COVID-19 pandemic. Software-as-a-service pioneer Salesforce.com (CRM) - Get Report and visual/document software maker Adobe Systems (ADBE) - Get Report have been raging growth stories over the past few years. Leo Sun has no position in any of the stocks mentioned. If you combine numbers, Salesforce.com posted about $600 million in net losses. Regardless, both are survivor stocks in a turbulent, risky broader market. It's a cage match between two software powerhouses: Salesforce.com and Adobe Systems. Investors are currently paying premiums for Adobe and Salesforce. If you want to bet on Salesforce.com growing faster, stay with Salesforce.com shares. When it hits, weak companies and their investors will be washed away. Nothing is seriously wrong at Adobe, but ADBE stock missed earnings estimates by a penny and the analysts went mad. Updates for agreements are pulled from Salesforce (vs. pushed from Adobe Sign) The Agreement Template page has been redesigned to improve clarity with a tabbed structure (vs. the scrolling window) Additionally, adjustments have been made to bring the Salesforce experience into better alignment with the Web experience. Adobe noted the impact to its revenue growth wasn't severe, but COVID-19 still reduced its adjusted EPS by $0.07 due to the cancellation of its corporate events (including Adobe Summit). Stock Market Futures. Apple is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Profitability. Reviewed in Last 12 Months Interactive Chart for Salesforce.com Inc (CRM), analyze all the data with a huge range of indicators. Adobe generates stronger earnings growth than Salesforce, is consistently profitable by GAAP measures, and regularly repurchases its shares with its excess cash flow. I have never used the Salesforce Marketing Cloud, but it seems to have a similar concept to the Adobe Marketing Cloud. And while recent positive news on coronavirus vaccine development led to a market sell-off, technical innovations and fundamental strength should help tech stocks outperform in the long run. Microsoft may earn an Affiliate Commission if you purchase something through recommended links in this article. Adobe expects its revenue and earnings to rise by 16% and 28% annually, respectively, in the second quarter. Adobe on the other hand, boasts a profitable story, although sales growth has been moderate. Adobe and Salesforce are both still great long-term investments. And that doesn't just mean changing your investment allocations or loading up on cash. Many investors are troubled by Salesforce.com's sheer lack of net income. The Motley Fool has a disclosure policy. Salesforce's stock … Salesforce.com is estimated to clock 29.88% earnings-per-share (EPS) growth per annum for the next half a decade. Adobe's stock advanced nearly 20% this year as its Creative Cloud services, marketing services, and analytics tools locked in mainstream and enterprise customers. However is ADBE stock a purchase proper now? 10 stocks we like better than Salesforce.com, When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. I'll show you how to protect yourself and prosper when you click here. © 2020 TheStreet, Inc. All rights reserved. But excluding a $0.27 boost from investments a year earlier, its earnings could grow 6%-8%. Salesforce Marketing Cloud vs Adobe Campaign; Salesforce Marketing Cloud vs Adobe Campaign. Adobe's Digital Media segment also doesn't face much direct competition and reduces its overall dependence on the more macro-sensitive Digital Experience business. 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