Salesforce or Zoom Communications: Which Stock Has More Upside?
Zoom Communications surged 11% during the past Day. 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 Salesforce gives you more. Salesforce (CRM) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Zoom Communications (ZM) stock, suggesting you may be better off investing in CRM
- CRM’s quarterly revenue growth was 8.6%, vs. ZM’s 4.4%.
- In addition, its Last 12 Months revenue growth came in at 8.4%, ahead of ZM’s 3.8%.
- CRM’s 3-year average margin is stronger: 19.2% vs. ZM’s 14.8%.
These differences become even clearer when you look at the financials side by side. The table highlights how ZM’s fundamentals stack up against those of CRM on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| ZM | CRM | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 25.9 | 24.5 | CRM |
| Revenue Growth | |||
| Last Quarter | 4.4% | 8.6% | CRM |
| Last 12 Months | 3.8% | 8.4% | CRM |
| Last 3 Year Average | 3.4% | 10.0% | CRM |
| Operating Margins | |||
| Last 12 Months | 22.9% | 22.0% | ZM |
| Last 3 Year Average | 14.8% | 19.2% | CRM |
| Momentum | |||
| Last 3 Year Return | 33.4% | 40.6% | 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: ZM Revenue Comparison | CRM Revenue Comparison
See more margin details: ZM Operating Income Comparison | CRM Operating Income Comparison
See detailed fundamentals on Buy or Sell CRM Stock and Buy or Sell ZM Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| ZM Return | -45% | -63% | 6% | 13% | 6% | -1% | -75% | ||
| CRM Return | 14% | -48% | 98% | 28% | -20% | -14% | 4% | ||
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 1% | 84% | <=== | |
| Monthly Win Rates [3] | |||||||||
| ZM Win Rate | 42% | 25% | 50% | 58% | 67% | 0% | 40% | ||
| CRM Win Rate | 58% | 33% | 50% | 67% | 42% | 0% | 42% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 100% | 71% | <=== | |
| Max Drawdowns [4] | |||||||||
| ZM Max Drawdown | -46% | -64% | -12% | -23% | -18% | -6% | -28% | ||
| CRM Max Drawdown | -8% | -50% | 0% | -17% | -32% | -17% | -21% | ||
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -1% | -7% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 1/26/2026 (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 CRM Dip Buyer Analyses and ZM Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Still not sure about ZM or CRM? Consider portfolio approach.
The Best Investors Think In Portfolios
Stocks can jump or crash but long term success comes from staying invested. The right portfolio helps you ride gains and cushion single stock drops
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.