Salesforce, Inc. (CRM) and AppLovin Corporation (APP) are two influential players in the software application industry, each driving innovation in distinct but overlapping markets. Salesforce excels in customer relationship management and enterprise cloud solutions, while AppLovin focuses on mobile app marketing and monetization platforms. This comparison highlights their market approaches and growth potential to help you decide which company might be the most compelling addition to your investment portfolio.
Table of contents
Companies Overview
I will begin the comparison between Salesforce, Inc. and AppLovin Corporation by providing an overview of these two companies and their main differences.
Salesforce Overview
Salesforce, Inc. is a leading provider of customer relationship management (CRM) technology, aiming to connect companies and customers globally. Its Customer 360 platform offers tools for sales, service, marketing, commerce, analytics, and integration, empowering businesses to deliver personalized and connected experiences. Founded in 1999 and headquartered in San Francisco, Salesforce serves diverse industries with a broad software ecosystem and extensive partner network.
AppLovin Overview
AppLovin Corporation develops a software platform focused on helping mobile app developers improve marketing and monetization. Its solutions include AppDiscovery for marketing, Adjust for analytics, and MAX for in-app bidding, targeting advertisers and publishers worldwide. Founded in 2011 and based in Palo Alto, AppLovin leverages real-time auctions and data-driven tools to optimize app advertising revenue and campaign performance.
Key similarities and differences
Both Salesforce and AppLovin operate in the technology sector with software application offerings, serving clients through platforms that enhance business performance. Salesforce’s broad CRM platform focuses on enterprise customer relationship management across multiple industries, while AppLovin specializes in mobile app marketing and monetization solutions. The scale of Salesforce’s business is significantly larger, reflected in its workforce and market cap, whereas AppLovin concentrates on mobile advertising technology with a smaller employee base.
Income Statement Comparison
This table presents a side-by-side comparison of the most recent fiscal year income statement metrics for Salesforce, Inc. and AppLovin Corporation, highlighting key financial performance indicators.
| Metric | Salesforce, Inc. (CRM) | AppLovin Corporation (APP) |
|---|---|---|
| Market Cap | 218B | 197B |
| Revenue | 37.9B | 4.7B |
| EBITDA | 11.1B | 2.3B |
| EBIT | 7.7B | 1.9B |
| Net Income | 6.2B | 1.6B |
| EPS | 6.44 | 4.68 |
| Fiscal Year | 2025 | 2024 |
Income Statement Interpretations
Salesforce, Inc.
Salesforce demonstrated consistent revenue growth from $21.25B in 2021 to $37.9B in 2025, with net income rising from $4.07B to $6.2B. Margins remained solid, with gross margin around 77% and net margin at 16.35% in 2025. The latest year showed an 8.7% revenue increase, a 27.8% EBIT rise, and a strong 37.8% net margin improvement, indicating enhanced profitability.
AppLovin Corporation
AppLovin’s revenue surged from $1.45B in 2020 to $4.71B in 2024, with net income turning positive and reaching $1.58B. Gross margin stayed favorable at 75.2%, while net margin improved sharply to 33.55%. The 2024 fiscal year saw a 43.4% revenue jump and an impressive 188.7% EBIT growth, reflecting rapid expansion and significant margin gains.
Which one has the stronger fundamentals?
Both companies exhibit favorable income statement trends and margin improvements. Salesforce shows steady, sizeable growth with stable margins and modest interest expense, while AppLovin boasts higher margin expansion and faster profit growth but carries a higher interest burden. The fundamentals favor steady scalability in Salesforce and aggressive profitability gains in AppLovin, presenting distinct profiles for investors to consider.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Salesforce, Inc. (CRM) and AppLovin Corporation (APP) for the most recent fiscal year available.
| Ratios | Salesforce, Inc. (CRM) | AppLovin Corporation (APP) |
|---|---|---|
| ROE | 10.13% | 144.96% |
| ROIC | 7.95% | 38.70% |
| P/E | 53.04 | 69.06 |
| P/B | 5.37 | 100.11 |
| Current Ratio | 1.06 | 2.19 |
| Quick Ratio | 1.06 | 2.19 |
| D/E (Debt-to-Equity) | 0.19 | 3.26 |
| Debt-to-Assets | 11.07% | 60.59% |
| Interest Coverage | 26.49 | 5.89 |
| Asset Turnover | 0.37 | 0.80 |
| Fixed Asset Turnover | 7.03 | 23.71 |
| Payout ratio | 24.80% | 0% |
| Dividend yield | 0.47% | 0% |
Interpretation of the Ratios
Salesforce, Inc.
Salesforce shows a mix of strong and weak ratios; its net margin is favorable at 16.35%, but valuation multiples like PE (53.04) and PB (5.37) are unfavorable, indicating high market expectations. Debt and interest coverage ratios are favorable, reflecting solid financial stability. The company pays dividends with a low yield of 0.47%, suggesting modest shareholder returns relative to its valuation.
AppLovin Corporation
AppLovin exhibits strong profitability ratios, including a high net margin of 33.55% and an impressive ROE of 144.96%, but suffers from a heavy debt load with debt-to-equity at 3.26 and debt-to-assets at 60.59%, both unfavorable. The company does not pay dividends, likely due to reinvestment priorities in its growth phase, supported by a strong current ratio of 2.19 indicating liquidity strength.
Which one has the best ratios?
Both companies present slightly favorable global ratio profiles. Salesforce balances moderate profitability with financial stability but is hampered by high valuation multiples and low dividend yield. AppLovin offers superior profitability and liquidity but carries significant leverage risks and no dividend payouts, reflecting differing risk and return profiles for investors.
Strategic Positioning
This section compares the strategic positioning of Salesforce, Inc. and AppLovin Corporation in terms of market position, key segments, and exposure to technological disruption:
Salesforce, Inc.
- Leading CRM software provider with large market cap and moderate competitive pressure
- Diverse product lines including Sales, Service, Marketing Clouds, Analytics, and Integration
- Moderate exposure through platform innovation and analytics offerings in customer engagement
AppLovin Corporation
- Mobile app marketing and monetization platform with high beta and NASDAQ listing
- Focused on advertising and apps segments with software solutions for app developers
- High exposure via real-time bidding and data analytics in mobile advertising technology
Salesforce, Inc. vs AppLovin Corporation Positioning
Salesforce pursues a diversified approach with multiple business segments across enterprise software, while AppLovin concentrates on mobile app marketing and monetization. Salesforce’s broad product suite targets various industries; AppLovin focuses on a niche digital advertising market.
Which has the best competitive advantage?
AppLovin shows a very favorable moat with strong value creation and growing profitability. Salesforce has a slightly unfavorable moat, shedding value despite improving ROIC, indicating weaker competitive advantage durability.
Stock Comparison
The past year reveals contrasting stock price dynamics, with Salesforce, Inc. experiencing a sustained bearish trend marked by accelerating declines, while AppLovin Corporation shows a strong bullish surge despite recent deceleration.
Trend Analysis
Salesforce, Inc. (CRM) recorded a -22.16% price change over the past 12 months, indicating a bearish trend with accelerating decline, fluctuating between 361.99 and 227.11 during the period.
AppLovin Corporation (APP) exhibited a 920.13% increase over the same span, confirming a bullish trend with deceleration, ranging from a low of 57.39 to a high of 721.37.
Comparing both, AppLovin delivered the highest market performance with a significantly positive trend, whereas Salesforce faced a pronounced negative trajectory.
Target Prices
Here is the current target price consensus for Salesforce, Inc. and AppLovin Corporation based on verified analyst data.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Salesforce, Inc. | 400 | 250 | 324.17 |
| AppLovin Corporation | 860 | 630 | 756.33 |
Analysts expect Salesforce’s stock to trade significantly above its current price of 227.86 USD, indicating potential upside. AppLovin’s consensus target is also well above its present price of 582.42 USD, suggesting strong growth expectations.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Salesforce, Inc. and AppLovin Corporation:
Rating Comparison
Salesforce, Inc. Rating
- Rating: B+, categorized as Very Favorable by analysts.
- Discounted Cash Flow Score: 4, indicating a Favorable DCF assessment.
- ROE Score: 4, showing Favorable efficiency in generating shareholder profit.
- ROA Score: 4, Favorable asset utilization to generate earnings.
- Debt To Equity Score: 3, Moderate financial risk profile.
- Overall Score: 3, assessed as Moderate overall financial standing.
AppLovin Corporation Rating
- Rating: B, also considered Very Favorable overall.
- Discounted Cash Flow Score: 3, a Moderate valuation outlook.
- ROE Score: 5, reflecting Very Favorable profitability efficiency.
- ROA Score: 5, Very Favorable asset use for earnings.
- Debt To Equity Score: 1, Very Unfavorable, indicating higher financial risk.
- Overall Score: 3, also rated Moderate in overall financial health.
Which one is the best rated?
Salesforce holds a higher overall rating (B+) with more moderate financial risk, while AppLovin has stronger ROE and ROA scores but a significantly weaker debt-to-equity score, balancing their overall scores equally at Moderate.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for Salesforce and AppLovin:
Salesforce Scores
- Altman Z-Score: 5.26, indicating a safe zone with low risk.
- Piotroski Score: 7, classified as strong financial health.
AppLovin Scores
- Altman Z-Score: 30.7, indicating a safe zone with low risk.
- Piotroski Score: 7, classified as strong financial health.
Which company has the best scores?
Both Salesforce and AppLovin have Altman Z-Scores in the safe zone, with AppLovin’s score significantly higher. Their Piotroski Scores are identical at 7, reflecting strong financial health for both companies.
Grades Comparison
Here is a comparison of the recent grades assigned to Salesforce, Inc. and AppLovin Corporation by reputable grading companies:
Salesforce, Inc. Grades
The following table summarizes recent grades from established financial institutions for Salesforce:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | Maintain | Overweight | 2026-01-12 |
| RBC Capital | Maintain | Sector Perform | 2026-01-05 |
| Morgan Stanley | Maintain | Overweight | 2025-12-09 |
| Citigroup | Maintain | Neutral | 2025-12-08 |
| DA Davidson | Maintain | Neutral | 2025-12-05 |
| Citizens | Maintain | Market Outperform | 2025-12-04 |
| Deutsche Bank | Maintain | Buy | 2025-12-04 |
| Wedbush | Maintain | Outperform | 2025-12-04 |
| Northland Capital Markets | Maintain | Market Perform | 2025-12-04 |
| Canaccord Genuity | Maintain | Buy | 2025-12-04 |
Overall, Salesforce’s ratings reveal a generally positive outlook with multiple “Buy” and “Overweight” grades, reflecting confidence among analysts.
AppLovin Corporation Grades
The table below presents recent grades for AppLovin from recognized financial firms:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Morgan Stanley | Maintain | Overweight | 2026-01-13 |
| Wells Fargo | Maintain | Overweight | 2026-01-08 |
| Jefferies | Maintain | Buy | 2025-12-11 |
| Benchmark | Maintain | Buy | 2025-12-11 |
| Citigroup | Maintain | Buy | 2025-11-12 |
| Wells Fargo | Maintain | Overweight | 2025-11-07 |
| Goldman Sachs | Maintain | Neutral | 2025-11-07 |
| JP Morgan | Maintain | Neutral | 2025-11-06 |
| Wedbush | Maintain | Outperform | 2025-11-06 |
| Piper Sandler | Maintain | Overweight | 2025-11-06 |
AppLovin’s grades show a strong positive consensus with multiple “Buy” and “Overweight” recommendations, indicating analyst confidence as well.
Which company has the best grades?
Both Salesforce and AppLovin hold mostly positive grades with “Buy” and “Overweight” prevailing. Salesforce has a larger volume of analyst coverage with consistent “Buy” and “Overweight” ratings, while AppLovin also displays strong buy-side sentiment but with fewer total ratings. This difference may affect investors’ perception of coverage depth and confidence.
Strengths and Weaknesses
Below is a comparative overview of Salesforce, Inc. (CRM) and AppLovin Corporation (APP) highlighting their key strengths and weaknesses based on recent financial and operational data.
| Criterion | Salesforce, Inc. (CRM) | AppLovin Corporation (APP) |
|---|---|---|
| Diversification | Highly diversified product segments including Service Cloud (9.05B), Sales Cloud (8.32B), and Integration & Analytics (5.78B) | Focused mainly on Advertising (3.22B) and Apps (1.49B), less diversified but specialized |
| Profitability | Moderate net margin at 16.35%, neutral ROIC at 7.95%, slightly unfavorable valuation metrics (PE 53.04, PB 5.37) | High profitability with net margin 33.55%, ROIC 38.7%, but expensive valuation (PE 69.06, PB 100.11) |
| Innovation | Steady investment in platform and analytics showing growing revenues | Rapid ROIC growth and strong innovation in mobile advertising and app platforms |
| Global presence | Strong global footprint with multiple cloud services across industries | Growing international presence but more niche in mobile ecosystem |
| Market Share | Leading CRM market shares with broad enterprise adoption | Expanding share in mobile advertising but smaller overall market footprint |
Key takeaways: Salesforce shows strength in diversification and stable profitability with improving ROIC, but valuation remains stretched. AppLovin excels in profitability and innovation with a very favorable moat, though it faces higher leverage and valuation risks. Both companies present growth opportunities, but investors should weigh AppLovin’s financial risk against Salesforce’s broader market stability.
Risk Analysis
Below is a summary table highlighting key risk factors for Salesforce, Inc. (CRM) and AppLovin Corporation (APP) based on the most recent data available.
| Metric | Salesforce, Inc. (CRM) | AppLovin Corporation (APP) |
|---|---|---|
| Market Risk | Beta 1.27, moderate volatility | Beta 2.50, high volatility |
| Debt Level | Low debt-to-equity (0.19), favorable leverage | High debt-to-equity (3.26), significant leverage risk |
| Regulatory Risk | Moderate, typical for tech industry | Moderate, typical for tech and advertising sectors |
| Operational Risk | Low, strong operational metrics | Moderate, smaller size and reliance on ad market |
| Environmental Risk | Low, technology sector with limited direct impact | Low, similar sector exposure |
| Geopolitical Risk | Moderate, global customer base | Moderate, global app market exposure |
The most impactful and likely risks are market volatility and debt levels. AppLovin’s high leverage (debt-to-equity 3.26) and elevated beta (2.50) pose significant financial and market risks. Salesforce’s debt profile is conservative, but its valuation ratios suggest some overpricing risk. Both face typical regulatory and geopolitical uncertainties inherent in global tech operations.
Which Stock to Choose?
Salesforce, Inc. (CRM) has shown steady income growth with an 8.72% revenue increase in 2025 and mostly favorable profitability metrics. Its financial ratios are slightly favorable, supported by low debt levels and strong interest coverage, but valuation ratios appear stretched. The company’s rating is very favorable, reflecting solid financial health and moderate risk.
AppLovin Corporation (APP) posted robust income growth with a 43.44% revenue rise in 2024 and highly favorable profitability ratios, though it carries significantly higher debt. Financial ratios are slightly favorable overall, but valuation and leverage metrics are unfavorable. Its rating is also very favorable, despite elevated financial risk due to leverage.
Investors prioritizing strong profitability and rapid growth might find AppLovin’s metrics appealing, given its very favorable rating and value creation moat. Conversely, those emphasizing financial stability and moderate leverage could interpret Salesforce’s slightly favorable ratios and very favorable rating as indicative of a more balanced profile.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Salesforce, Inc. and AppLovin Corporation to enhance your investment decisions:
