Between Adobe and Salesforce, Which Stock Looks Set to Break Out?
Salesforce surged 11% during the past Week. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Adobe gives you more. Adobe (ADBE) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Salesforce (CRM) stock, suggesting you may be better off investing in ADBE
- ADBE’s quarterly revenue growth was 10.7%, vs. CRM’s 8.6%.
- In addition, its Last 12 Months revenue growth came in at 10.7%, ahead of CRM’s 8.4%.
- ADBE leads on profitability over both periods – LTM margin of 36.2% and 3-year average of 35.4%.
These differences become even clearer when you look at the financials side by side. The table highlights how CRM’s fundamentals stack up against those of ADBE on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| CRM | ADBE | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 27.7 | 17.1 | ADBE |
| Revenue Growth | |||
| Last Quarter | 8.6% | 10.7% | ADBE |
| Last 12 Months | 8.4% | 10.7% | ADBE |
| Last 3 Year Average | 10.0% | 10.5% | ADBE |
| Operating Margins | |||
| Last 12 Months | 22.0% | 36.2% | ADBE |
| Last 3 Year Average | 19.2% | 35.4% | ADBE |
| Momentum | |||
| Last 3 Year Return | 101.5% | 2.0% | CRM |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: CRM Revenue Comparison | ADBE Revenue Comparison
See more margin details: CRM Operating Income Comparison | ADBE Operating Income Comparison
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- Could Cash Machine Salesforce Stock Be Your Next Buy?
- Salesforce Stock: Join the Rally at a 35% Discount
See detailed fundamentals on Buy or Sell ADBE Stock and Buy or Sell CRM Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| CRM Return | 37% | 14% | -48% | 98% | 28% | -22% | 61% | ||
| ADBE Return | 52% | 13% | -41% | 77% | -25% | -24% | 3% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 16% | 112% | <=== | |
| Monthly Win Rates [3] | |||||||||
| CRM Win Rate | 58% | 58% | 33% | 50% | 67% | 40% | 51% | ||
| ADBE Win Rate | 67% | 67% | 33% | 67% | 33% | 20% | 48% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | 64% | <=== | |
| Max Drawdowns [4] | |||||||||
| CRM Max Drawdown | -24% | -8% | -50% | 0% | -17% | -32% | -22% | ||
| ADBE Max Drawdown | -14% | -16% | -51% | -5% | -27% | -30% | -24% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 12/8/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read ADBE Dip Buyer Analyses and CRM Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Still not sure about CRM or ADBE? Consider portfolio approach.
The Right Way To Invest Is Through Portfolios
Individual stocks are unpredictable. A smart portfolio keeps you invested, limits downside shocks, and provides upside exposure
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.