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Despite Salesforce experiencing a -5.3% decline over the past day, its counterpart Adobe might be a more favorable option. While Salesforce leads the CRM and enterprise cloud software market with broad adoption across Fortune 500 companies, the stock has faced headwinds due to mixed earnings and the company’s heavy investments in AI initiatives, which have yet to pay off. Constantly assessing alternatives is fundamental to a solid investment strategy. Adobe (ADBE) stock demonstrates stronger revenue growth during critical periods, enhanced profitability, and a comparatively lower valuation than Salesforce (CRM) stock, indicating that investing in ADBE may be a wiser choice. While Adobe too has had its share of problems, the company’s flagship creative products with high switching costs , industry-standard status, and subscription model could make the stock more compelling. Let’s look at the fundamentals as well. ADBE’s quarterly revenue growth was 10.7%, compared to CRM's 9.8%. Additionally, its last 12 months revenue growth stood at 10.7%, outperforming CRM’s 8.3%. ADBE outperforms in profitability across both timelines - an LTM margin of 36.2% and a 3-year average of 35.4%. Investing in a single stock can be risky, but there is tremendous advantage in adopting a wider, diversified strategy. Strategic asset allocation and diversification keep you invested. Did you know that investors who panicked and exited the S&P in 2020 missed out on the substantial gains that followed? Trefis High Quality Portfolio and Empirical Asset Management’s asset allocation strategy are structured to mitigate volatility so you can remain committed to your investments. CRM offers CRM technology and the Customer 360 platform to provide connected experiences across global financial services, healthcare, manufacturing, and other sectors. ADBE, a global software entity, provides the Creative Cloud subscription and products in Digital Media, Experience, Publishing, and Advertising, targeting enterprise clients through direct sales and local offices. Valuation & Performance Overview MORE FOR YOU See more revenue details: CRM Revenue Comparison | ADBE Revenue Comparison See more margin details: CRM Operating Income Comparison | ADBE Operating Income Comparison However, do these numbers provide the complete picture? Read Buy or Sell ADBE Stock to determine if Adobe’s advantage remains valid or if Salesforce still has the upper hand (see Buy or Sell CRM Stock). Historical Market Performance Regardless of how positive the statistics may appear, investing in stocks is seldom a straightforward journey. There are risks that must be considered. Read ADBE Dip Buyer Analyses and CRM Dip Buyer Analyses to explore how these stocks have declined and bounced back in the past.
