Comprehensive Stock Comparison
Compare Freshworks Inc. (FRSH) vs Salesforce, Inc. (CRM) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | FRSH | 20.8% revenue growth vs CRM's 9.6% |
| Value | FRSH | Lower P/E (13.7x vs 16.5x) |
| Quality / Margins | FRSH | 21.9% net margin vs CRM's 18.0% |
| Stability / Safety | CRM | Beta 1.04 vs FRSH's 1.31 |
| Dividends | CRM | 0.9% yield; 2-year raise streak; FRSH pays no meaningful dividend |
| Momentum (1Y) | CRM | -34.0% vs FRSH's -54.2% |
| Efficiency (ROA) | FRSH | 11.5% ROA vs CRM's 6.6%, ROIC -17.8% vs 10.9% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Freshworks provides cloud-based customer engagement software for businesses of all sizes. It generates revenue primarily through subscription fees for its suite of products — including Freshdesk for customer support (~40% of revenue), Freshsales for CRM (~30%), and other tools for marketing and IT service management. The company's key advantage is its unified, user-friendly platform that integrates multiple business functions, allowing customers to avoid the complexity of managing separate point solutions from different vendors.
Salesforce is a cloud-based customer relationship management (CRM) software company that helps businesses manage sales, service, marketing, and commerce operations. It generates revenue primarily through subscription fees for its SaaS platform—with sales cloud (~30%), service cloud (~25%), and platform/other (~45%) being its main segments. Its competitive moat lies in its massive ecosystem of integrated applications, enterprise data architecture, and high switching costs for customers deeply embedded in its platform.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
FRSH leads in 2 of 6 categories (Financial Metrics, Valuation Metrics). CRM leads in 2 (Total Returns, Risk & Volatility). 1 tied.
Financial Metrics (TTM)
CRM is the larger business by revenue, generating $41.5B annually — 49.5x FRSH's $839M. Profitability is closely matched — net margins range from 21.9% (FRSH) to 18.0% (CRM).
| Metric | FRSHFreshworks Inc. | CRMSalesforce, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $839M | $41.5B |
| EBITDAEarnings before interest/tax | $30M | $11.4B |
| Net IncomeAfter-tax profit | $184M | $7.5B |
| Free Cash FlowCash after capex | $232M | $14.4B |
| Gross MarginGross profit ÷ Revenue | +85.0% | +77.7% |
| Operating MarginEBIT ÷ Revenue | +1.6% | +21.5% |
| Net MarginNet income ÷ Revenue | +21.9% | +18.0% |
| FCF MarginFCF ÷ Revenue | +27.7% | +34.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | +14.5% | +12.1% |
| EPS Growth (YoY)Latest quarter vs prior year | +10.3% | +18.3% |
Valuation Metrics
| Metric | FRSHFreshworks Inc. | CRMSalesforce, Inc. |
|---|---|---|
| Market CapShares × price | $2.4B | $187.4B |
| Enterprise ValueMkt cap + debt − cash | $1.8B | $186.8B |
| Trailing P/EPrice ÷ TTM EPS | -24.44x | 24.97x |
| Forward P/EPrice ÷ next-FY EPS est. | 13.75x | 16.54x |
| PEG RatioP/E ÷ EPS growth rate | — | 2.04x |
| EV / EBITDAEnterprise value multiple | — | 20.95x |
| Price / SalesMarket cap ÷ Revenue | 3.29x | 4.51x |
| Price / BookPrice ÷ Book value/share | 2.07x | 3.15x |
| Price / FCFMarket cap ÷ FCF | 16.25x | 13.01x |
Profitability & Efficiency
FRSH delivers a 17.8% return on equity — every $100 of shareholder capital generates $18 in annual profit, vs $13 for CRM. FRSH carries lower financial leverage with a 0.03x debt-to-equity ratio, signaling a more conservative balance sheet compared to CRM's 0.11x. On the Piotroski fundamental quality scale (0–9), CRM scores 8/9 vs FRSH's 5/9, reflecting strong financial health.
| Metric | FRSHFreshworks Inc. | CRMSalesforce, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +17.8% | +12.6% |
| ROA (TTM)Return on assets | +11.5% | +6.6% |
| ROICReturn on invested capital | -17.8% | +10.9% |
| ROCEReturn on capital employed | -11.9% | +11.9% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 8 |
| Debt / EquityFinancial leverage | 0.03x | 0.11x |
| Net DebtTotal debt minus cash | -$582M | -$590M |
| Cash & Equiv.Liquid assets | $620M | $7.3B |
| Total DebtShort + long-term debt | $38M | $6.7B |
| Interest CoverageEBIT ÷ Interest expense | — | 44.14x |
Total Returns (with DRIP)
A $10,000 investment in CRM five years ago would be worth $9,104 today (with dividends reinvested), compared to $1,645 for FRSH. Over the past 12 months, CRM leads with a -34.0% total return vs FRSH's -54.2%. The 3-year compound annual growth rate (CAGR) favors CRM at 6.6% vs FRSH's -19.4% — a key indicator of consistent wealth creation.
| Metric | FRSHFreshworks Inc. | CRMSalesforce, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -32.6% | -23.2% |
| 1-Year ReturnPast 12 months | -54.2% | -34.0% |
| 3-Year ReturnCumulative with dividends | -47.7% | +21.1% |
| 5-Year ReturnCumulative with dividends | -83.6% | -9.0% |
| 10-Year ReturnCumulative with dividends | -83.6% | +192.3% |
| CAGR (3Y)Annualised 3-year return | -19.4% | +6.6% |
Risk & Volatility
CRM is the less volatile stock with a 1.04 beta — it tends to amplify market swings less than FRSH's 1.31 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. CRM currently trades 64.3% from its 52-week high vs FRSH's 45.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | FRSHFreshworks Inc. | CRMSalesforce, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.31x | 1.04x |
| 52-Week HighHighest price in past year | $17.21 | $303.07 |
| 52-Week LowLowest price in past year | $6.79 | $174.57 |
| % of 52W HighCurrent price vs 52-week peak | +45.4% | +64.3% |
| RSI (14)Momentum oscillator 0–100 | 40.1 | 47.5 |
| Avg Volume (50D)Average daily shares traded | 4.6M | 8.6M |
Analyst Outlook
Wall Street rates FRSH as "Buy" and CRM as "Buy". Consensus price targets imply 53.5% upside for CRM (target: $299) vs 46.2% for FRSH (target: $11). CRM is the only dividend payer here at 0.85% yield — a key consideration for income-focused portfolios.
| Metric | FRSHFreshworks Inc. | CRMSalesforce, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $11.43 | $299.00 |
| # AnalystsCovering analysts | 18 | 97 |
| Dividend YieldAnnual dividend ÷ price | — | +0.9% |
| Dividend StreakConsecutive years of raises | — | 2 |
| Dividend / ShareAnnual DPS | — | $1.66 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.6% | +6.7% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Sep 21 | Feb 26 | Change |
|---|---|---|---|
| Freshworks Inc. (FRSH) | 100 | 22.42 | -77.6% |
| Salesforce, Inc. (CRM) | 100 | 76.59 | -23.4% |
Salesforce, Inc. (CRM) returned -9% over 5 years vs Freshworks Inc. (FRSH)'s -84%.
Chart 2Revenue Growth — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Freshworks Inc. (FRSH) | $119M | $720M | +507.1% |
| Salesforce, Inc. (CRM) | $8.4B | $41.5B | +394.8% |
Salesforce, Inc.'s revenue grew from $8.4B (2017) to $41.5B (2026) — a 19.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Freshworks Inc. (FRSH) | -0.0% | -13.2% | -224269.5% |
| Salesforce, Inc. (CRM) | 3.8% | 18.0% | +366.6% |
Salesforce, Inc.'s net margin went from 4% (2017) to 18% (2026).
Chart 4P/E Ratio History — 7 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Salesforce, Inc. (CRM) | 393.2 | 25 | -93.6% |
Salesforce, Inc. has traded in a 25x–393x P/E range over 7 years; current trailing P/E is ~25x.
Chart 5EPS Growth — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Freshworks Inc. (FRSH) | -0 | -0.32 | -79900.0% |
| Salesforce, Inc. (CRM) | 0.26 | 7.8 | +2900.0% |
Salesforce, Inc.'s EPS grew from $0.26 (2017) to $7.80 (2026) — a 46% CAGR.
Chart 6Free Cash Flow — 5 Years
Freshworks Inc. generated $146M FCF in 2024 (+6131% vs 2021). Salesforce, Inc. generated $14B FCF in 2026 (+252% vs 2021).
FRSH vs CRM: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is FRSH or CRM a better buy right now?
Salesforce, Inc. (CRM) offers the better valuation at 25.0x trailing P/E (16.5x forward), making it the more compelling value choice. Analysts rate Freshworks Inc. (FRSH) a "Buy" — based on 18 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — FRSH or CRM?
On forward P/E, Freshworks Inc. is actually cheaper at 13.7x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — FRSH or CRM?
Over the past 5 years, Salesforce, Inc. (CRM) delivered a total return of -9.0%, compared to -83.6% for Freshworks Inc. (FRSH). A $10,000 investment in CRM five years ago would be worth approximately $9K today (assuming dividends reinvested). Over 10 years, the gap is even starker: CRM returned +192.3% versus FRSH's -83.6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — FRSH or CRM?
By beta (market sensitivity over 5 years), Salesforce, Inc. (CRM) is the lower-risk stock at 1.04β versus Freshworks Inc.'s 1.31β — meaning FRSH is approximately 26% more volatile than CRM relative to the S&P 500. On balance sheet safety, Freshworks Inc. (FRSH) carries a lower debt/equity ratio of 3% versus 11% for Salesforce, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — FRSH or CRM?
Salesforce, Inc. (CRM) is the more profitable company, earning 18.0% net margin versus -13.2% for Freshworks Inc. — meaning it keeps 18.0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CRM leads at 21.5% versus -19.2% for FRSH. At the gross margin level — before operating expenses — FRSH leads at 84.3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is FRSH or CRM more undervalued right now?
On forward earnings alone, Freshworks Inc. (FRSH) trades at 13.7x forward P/E versus 16.5x for Salesforce, Inc. — 2.8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CRM: 53.5% to $299.00.
07Which pays a better dividend — FRSH or CRM?
In this comparison, CRM (0.9% yield) pays a dividend. FRSH does not pay a meaningful dividend and should not be held primarily for income.
08Is FRSH or CRM better for a retirement portfolio?
For long-horizon retirement investors, Salesforce, Inc. (CRM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.04), 0.9% yield, +192.3% 10Y return). Both have compounded well over 10 years (CRM: +192.3%, FRSH: -83.6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between FRSH and CRM?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. CRM pays a dividend while FRSH does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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