In the fast-evolving software industry, Salesforce, Inc. and Snowflake Inc. stand out as leaders driving innovation in customer relationship management and cloud data platforms, respectively. Both companies compete to redefine how businesses harness data and improve operations, making them natural peers for comparison. This article will explore their strengths and strategies to help you identify which company presents a more compelling investment opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between Salesforce and Snowflake 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, focusing on connecting companies with their customers globally. Its Customer 360 platform offers tools for sales, service, marketing, commerce, and analytics, enabling businesses to deliver personalized experiences. Headquartered in San Francisco, Salesforce serves diverse industries with a broad suite of cloud-based applications and integration services.
Snowflake Overview
Snowflake Inc. specializes in cloud-based data platforms, offering its Data Cloud to consolidate data into a unified source for business insights and data-driven applications. Based in Bozeman, Montana, Snowflake targets organizations across various industries and sizes, emphasizing scalable and collaborative data management solutions. The company went public in 2020 and focuses on enabling seamless data sharing and analytics through its platform.
Key similarities and differences
Both Salesforce and Snowflake operate in the technology sector within the software application industry, focusing on cloud-based solutions. Salesforce provides a comprehensive CRM suite with diverse service offerings across sales, marketing, and analytics, while Snowflake concentrates on cloud data warehousing and enabling data-driven decision-making. Salesforce’s workforce is significantly larger, reflecting its broader service scope, compared to Snowflake’s more specialized platform and smaller employee base.
Income Statement Comparison
This table presents a side-by-side comparison of key income statement metrics for Salesforce, Inc. and Snowflake Inc. for the fiscal year 2025.
| Metric | Salesforce, Inc. (CRM) | Snowflake Inc. (SNOW) |
|---|---|---|
| Market Cap | 219.1B | 70.8B |
| Revenue | 37.9B | 3.63B |
| EBITDA | 11.1B | -1.10B |
| EBIT | 7.67B | -1.28B |
| Net Income | 6.20B | -1.29B |
| EPS | 6.44 | -3.86 |
| Fiscal Year | 2025 | 2025 |
Income Statement Interpretations
Salesforce, Inc.
Salesforce demonstrated consistent revenue growth from 2021 to 2025, reaching $37.9B in 2025. Net income also rose substantially to $6.2B, though net margin declined slightly over the period. In 2025, revenue growth accelerated by 8.7%, with a strong 37.8% increase in net margin, reflecting improved profitability and operating efficiency.
Snowflake Inc.
Snowflake’s revenue surged from $592M in 2021 to $3.63B in 2025, indicating rapid expansion. Despite this, net income remained negative, worsening to a loss of $1.29B in 2025. Margins stayed unfavorable, with a negative EBIT margin of -35.4%. The latest year saw a 29.2% revenue increase, but net margin and EPS declined further, highlighting ongoing profitability challenges.
Which one has the stronger fundamentals?
Salesforce exhibits stronger fundamentals with consistent profitability, favorable margins, and positive net income growth. Snowflake shows impressive top-line growth but struggles with sustained losses and negative operating margins. Salesforce’s stable earnings and margin improvements outweigh Snowflake’s high growth but persistent unprofitability, resulting in a more favorable overall income statement profile.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Salesforce, Inc. (CRM) and Snowflake Inc. (SNOW) based on their most recent full fiscal year data ending January 31, 2025.
| Ratios | Salesforce, Inc. (CRM) | Snowflake Inc. (SNOW) |
|---|---|---|
| ROE | 10.1% | -42.9% |
| ROIC | 7.95% | -25.2% |
| P/E | 53.0 | -47.0 |
| P/B | 5.37 | 20.13 |
| Current Ratio | 1.06 | 1.75 |
| Quick Ratio | 1.06 | 1.75 |
| D/E (Debt-to-Equity) | 0.19 | 0.90 |
| Debt-to-Assets | 11.1% | 29.7% |
| Interest Coverage | 26.5 | -527.7 |
| Asset Turnover | 0.37 | 0.40 |
| Fixed Asset Turnover | 7.03 | 5.53 |
| Payout Ratio | 24.8% | 0% |
| Dividend Yield | 0.47% | 0% |
Interpretation of the Ratios
Salesforce, Inc.
Salesforce shows a slightly favorable overall ratio profile with strong net margin at 16.35% and solid interest coverage of 28.18, indicating good profitability and debt service capacity. However, high P/E of 53.04 and P/B of 5.37 are unfavorable, suggesting expensive valuation. The dividend yield is low at 0.47%, reflecting modest shareholder returns supported by dividend payouts.
Snowflake Inc.
Snowflake’s ratios exhibit challenges with negative net margin (-35.45%), return on equity (-42.86%), and return on invested capital (-25.24%), reflecting ongoing losses and inefficiencies. Favorable current and quick ratios at 1.75 show good short-term liquidity. The company does not pay dividends, consistent with its negative earnings and focus on growth and reinvestment.
Which one has the best ratios?
Comparing the two, Salesforce presents a more balanced and slightly favorable ratio set with profitability and dividend returns, while Snowflake’s ratios reflect financial strain and negative returns, despite strong liquidity. Thus, Salesforce’s financial ratios are generally more favorable than Snowflake’s as of fiscal year 2025.
Strategic Positioning
This section compares the strategic positioning of Salesforce, Inc. and Snowflake Inc. regarding Market position, Key segments, and Exposure to technological disruption:
Salesforce, Inc.
- Leading CRM software provider with strong market cap (219B), facing competitive pressure in application software.
- Diverse revenue streams: Sales Cloud, Service Cloud, Marketing, Commerce, Integration, Analytics, and platform services.
- Exposure through platform innovation and integration services; adapts with analytics and engagement tools like Slack.
Snowflake Inc.
- Cloud-based data platform provider with smaller market cap (71B), competing in data cloud market.
- Focused primarily on data cloud products and professional services with limited diversification.
- Positioned in cloud data consolidation, with potential disruption risk from evolving cloud and data technologies.
Salesforce, Inc. vs Snowflake Inc. Positioning
Salesforce exhibits a diversified business model across multiple CRM and cloud services, supporting broad industry applications. Snowflake’s concentrated focus on cloud data platforms offers specialization but limits exposure to multiple revenue drivers, potentially increasing risk.
Which has the best competitive advantage?
Salesforce shows a slightly unfavorable moat with growing ROIC but is still shedding value, indicating improving profitability. Snowflake has a very unfavorable moat with declining ROIC and decreasing profitability, suggesting weaker competitive advantage.
Stock Comparison
The stock prices of Salesforce, Inc. (CRM) and Snowflake Inc. (SNOW) have both exhibited declining trends over the past 12 months, with CRM showing accelerated losses and SNOW experiencing deceleration amid significant trading volume shifts.
Trend Analysis
Salesforce, Inc. (CRM) recorded a bearish trend with a -21.53% price decline over the past year, accelerating downward from recent months despite slight buyer dominance and increasing volume. Volatility remains elevated with a standard deviation of 31.78.
Snowflake Inc. (SNOW) also experienced a bearish trend, down -7.54% over the last year, but with decelerating losses. Recent months showed a sharper decline of -22.86% and seller dominance amid decreasing volume and a higher volatility level of 42.62.
Comparing both, Salesforce’s stock delivered a larger overall decline, indicating weaker market performance relative to Snowflake, which showed less severe losses but stronger recent negative momentum.
Target Prices
The current analyst consensus presents an optimistic outlook for both Salesforce, Inc. and Snowflake Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Salesforce, Inc. | 400 | 250 | 324.17 |
| Snowflake Inc. | 325 | 237 | 281.86 |
Analysts expect Salesforce’s stock to trade significantly above its current price of $229.2, while Snowflake’s consensus target of $281.86 also suggests considerable upside from its current price of $211.43. This indicates positive growth potential for both stocks.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Salesforce, Inc. (CRM) and Snowflake Inc. (SNOW):
Rating Comparison
CRM Rating
- Rating: B+ indicating a very favorable assessment.
- Discounted Cash Flow Score: 4, favorable valuation.
- ROE Score: 4, favorable efficiency in profit use.
- ROA Score: 4, favorable asset utilization.
- Debt To Equity Score: 3, moderate financial risk.
- Overall Score: 3, moderate overall financial standing.
SNOW Rating
- Rating: C- reflecting a very unfavorable assessment.
- Discounted Cash Flow Score: 3, moderate valuation.
- ROE Score: 1, very unfavorable efficiency.
- ROA Score: 1, very unfavorable asset utilization.
- Debt To Equity Score: 1, very unfavorable financial risk.
- Overall Score: 1, very unfavorable overall financial standing.
Which one is the best rated?
Based strictly on provided data, CRM holds clearly better ratings and financial scores than SNOW, with favorable scores in cash flow, profitability, and risk metrics, while SNOW’s scores are mostly very unfavorable.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for Salesforce and Snowflake:
Salesforce Scores
- Altman Z-Score: 5.26, indicating a safe financial zone and very low bankruptcy risk.
- Piotroski Score: 7, reflecting strong financial health and solid investment quality.
Snowflake Scores
- Altman Z-Score: 5.36, also in the safe zone with very low bankruptcy risk.
- Piotroski Score: 4, suggesting average financial strength and investment quality.
Which company has the best scores?
Salesforce and Snowflake both have strong Altman Z-Scores in the safe zone, indicating low bankruptcy risk. However, Salesforce’s Piotroski Score of 7 is notably stronger than Snowflake’s 4, showing better overall financial robustness.
Grades Comparison
Here is a comparison of the recent grades assigned to Salesforce, Inc. and Snowflake Inc. by reputable grading companies:
Salesforce, Inc. Grades
Below is a table summarizing recent grades for Salesforce, Inc. from recognized financial institutions:
| 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 |
Salesforce’s grades predominantly range from Neutral to Overweight and Buy, reflecting a generally positive rating consensus with no recent downgrades.
Snowflake Inc. Grades
Below is a table summarizing recent grades for Snowflake Inc. from recognized financial institutions:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | Downgrade | Equal Weight | 2026-01-12 |
| Argus Research | Upgrade | Buy | 2026-01-08 |
| Citigroup | Maintain | Buy | 2025-12-08 |
| Wells Fargo | Maintain | Overweight | 2025-12-04 |
| Keybanc | Maintain | Overweight | 2025-12-04 |
| Piper Sandler | Maintain | Overweight | 2025-12-04 |
| Morgan Stanley | Maintain | Overweight | 2025-12-04 |
| Wedbush | Maintain | Outperform | 2025-12-04 |
| Deutsche Bank | Maintain | Buy | 2025-12-04 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-12-04 |
Snowflake’s ratings mostly hold steady at Overweight or Buy, but Barclays recently downgraded it to Equal Weight, indicating some cautious sentiment.
Which company has the best grades?
Salesforce, Inc. has a slightly stronger and more stable rating profile, with multiple Overweight and Buy grades and no recent downgrades, compared to Snowflake Inc.’s mix of Buy and Overweight ratings combined with a recent downgrade. This could influence investor perception of Salesforce as a more consistently favored stock.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for Salesforce, Inc. (CRM) and Snowflake Inc. (SNOW) based on the most recent data.
| Criterion | Salesforce, Inc. (CRM) | Snowflake Inc. (SNOW) |
|---|---|---|
| Diversification | Highly diversified with multiple revenue streams across Sales Cloud, Service Cloud, Platform, Marketing, and Analytics (over $37B total in 2025) | Less diversified, primarily product-based revenue (~$3.46B in 2025) with smaller professional services |
| Profitability | Positive net margin (16.35%), stable ROIC (~7.95%), but ROIC below WACC indicating slight value destruction | Negative net margin (-35.45%) and declining ROIC (-25.24%), indicating significant value destruction |
| Innovation | Strong innovation evidenced by growing ROIC trend and broad cloud platform offerings | Innovation challenged by declining ROIC and profitability; still investing heavily in growth |
| Global presence | Strong global presence supported by diverse cloud solutions with broad enterprise adoption | Growing global footprint but smaller scale and less diversified client base |
| Market Share | Large, established market share in CRM and cloud services | Smaller market share with rapid growth but facing profitability challenges |
Key takeaways: Salesforce shows strong diversification and improving profitability despite slight value destruction, positioning it as a stable, innovative leader. Snowflake, while innovating and growing revenue rapidly, struggles with profitability and value creation, indicating higher risk for investors.
Risk Analysis
Below is a comparative table highlighting key risks for Salesforce, Inc. (CRM) and Snowflake Inc. (SNOW) based on the latest available data for 2025.
| Metric | Salesforce, Inc. (CRM) | Snowflake Inc. (SNOW) |
|---|---|---|
| Market Risk | Beta 1.27, moderate volatility | Beta 1.14, slightly lower volatility |
| Debt level | Low debt-to-equity 0.19, favorable leverage | Moderate debt-to-equity 0.90, neutral leverage |
| Regulatory Risk | Moderate, US tech regulation exposure | Moderate, US and international data privacy rules |
| Operational Risk | Large scale, complex operations but stable | Smaller scale, rapid growth phase, higher operational risk |
| Environmental Risk | Low direct environmental impact | Low direct environmental impact |
| Geopolitical Risk | US-based, moderate exposure | US-based with international clients, moderate exposure |
The most significant risks to consider are Snowflake’s negative profitability metrics and high debt leverage, which increase financial vulnerability. Salesforce’s risks are relatively more balanced, with strong financial health but sensitivity to tech market fluctuations. Caution is advised with Snowflake due to its unfavorable margins and operational risks amid growth.
Which Stock to Choose?
Salesforce, Inc. (CRM) shows a favorable income evolution with 8.72% revenue growth in 2025, strong profitability metrics including a 16.35% net margin, and a slightly favorable global ratio profile. Its debt levels are low (debt-to-equity 0.19), and it holds a very favorable B+ rating with a moderate overall score. However, CRM’s ROIC is below WACC, indicating slight value destruction despite improving profitability.
Snowflake Inc. (SNOW) exhibits strong revenue growth of 29.21% in 2025 but suffers from negative net margin (-35.45%) and declining profitability ratios. Its financial ratios are slightly unfavorable overall, with higher debt (debt-to-equity 0.9) and a very unfavorable rating of C-. The company has a very unfavorable moat status due to declining ROIC below WACC, signaling persistent value erosion.
For investors prioritizing quality and stable profitability, Salesforce’s slightly favorable rating and growing profitability might appear more attractive. Conversely, growth-oriented investors with higher risk tolerance could find Snowflake’s strong revenue expansion and valuation metrics suggestive of potential upside despite current challenges. The choice might therefore depend on an investor’s preference for stability versus aggressive growth prospects.
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 Snowflake Inc. to enhance your investment decisions:
