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CRM vs FRSH
Which Stock Would AI Choose? Salesforce (CRM) vs. Freshworks (FRSH) Stock Comparison
Key Takeaways
- Scale Contrast: CRM (Salesforce) is a $140-billion enterprise cloud giant, while FRSH (Freshworks) is a mid-cap SaaS challenger with a market capitalization under $4 billion.
- Growth vs. Profitability: Freshworks delivers higher revenue growth (mid-teens percentage) but at a much smaller base; Salesforce generates massive absolute profit with single-digit growth and expanding margins.
- AI Strategy: Both companies are betting heavily on AI — Salesforce with its Agentforce platform and Freshworks with Freddy AI — but their scale of investment and monetization differ dramatically.
- Valuation Divergence: CRM trades at roughly 20 times trailing earnings with a dividend yield, while FRSH trades near its 52-week lows with a more speculative valuation profile.
- Risk Profile: CRM offers institutional-grade stability and capital returns; FRSH presents higher upside potential but significantly greater volatility and competitive risk.
- Recent Momentum: Both stocks have faced downward pressure, though CRM shows signs of stabilization after a steep year-to-date decline.
Introduction
Investors evaluating the software-as-a-service (SaaS) landscape often weigh established incumbents against nimble challengers. This comparison between Salesforce (CRM) and Freshworks (FRSH) captures precisely that dynamic. One is the dominant global player in customer relationship management (CRM) technology with nearly $41 billion in annual revenue; the other is a fast-growing provider of uncomplicated customer and employee experience software surpassing $800 million in revenue. Both are integrating artificial intelligence (AI) into their platforms, and both have experienced significant stock price volatility in recent months. For traders and long-term investors alike, understanding how these two companies compare across growth, profitability, and market positioning is essential for navigating the current environment.
CRM Overview and Recent Performance
Salesforce, headquartered in San Francisco, is the world's leading provider of cloud-based CRM software. Its platform spans sales, service, marketing, commerce, analytics, and integration — anchored by offerings such as Sales Cloud, Service Cloud, Marketing Cloud, MuleSoft, Tableau, and the Slack collaboration hub. In recent weeks, CRM shares have traded around the $170 level, recovering modestly from a 52-week low of approximately $146 but still sitting roughly 37% below the 52-week high of $274 reached in mid-2025. The stock's year-to-date decline of roughly 35% reflects broader concerns about slowing revenue growth in the software sector and investor skepticism about whether AI will cannibalize or complement traditional SaaS business models.
Fundamentally, Salesforce continues to perform. The company reported fiscal Q1 2027 revenue of $11.13 billion — a 13% year-over-year increase — and delivered adjusted earnings per share (EPS) of $3.88, handily beating consensus estimates. The centerpiece of Salesforce's growth narrative is Agentforce, its autonomous AI agent platform, which closed over 3,000 paid deals in its early quarters and is now a core component in roughly half of enterprise-sized transactions. Management has also returned substantial capital to shareholders, including a $25 billion accelerated share repurchase program announced in mid-2026. Non-GAAP (adjusted) operating margins have expanded to approximately 34%, and free cash flow (FCF) generation remains robust. However, decelerating growth in core clouds such as Marketing and Commerce continues to weigh on sentiment, and analysts remain divided, with the consensus tilting toward "Moderate Buy" but several firms issuing downgrades in recent weeks.
FRSH Overview and Recent Performance
Freshworks, based in San Mateo, California, provides cloud-based software designed to make customer and employee service uncomplicated. Its portfolio includes Freshdesk for customer support, Freshservice for IT service management (ITSM), and Freshsales for sales automation, alongside newer AI-powered capabilities branded as Freddy AI. The company serves nearly 75,000 paying customers across 120 countries, with a growing emphasis on mid-market and enterprise clients. Full-year 2025 revenue reached $838.8 million, representing 16% growth, and the company achieved its first GAAP (Generally Accepted Accounting Principles) profitable quarter in Q4 2025 — a significant milestone after years of operating losses.
Despite these operational achievements, FRSH shares have faced considerable selling pressure. After going public at $36 per share in 2021, the stock has retreated substantially and in recent weeks has traded near multi-year lows. The company's net dollar retention rate improved to 108% in Q4 2025, signaling that existing customers continue to expand their spending, and non-GAAP operating margins reached roughly 19%. Freshworks also closed strategic acquisitions, including Device42 and FireHydrant, to strengthen its IT service and operations management capabilities. Looking ahead, management guided for 2026 revenue between $952 million and $960 million, implying 13.5–14.5% growth. The company's AI-related annual recurring revenue (ARR) surpassed $25 million in late 2025, and Freshworks has set an ambitious target of reaching $100 million in AI ARR by 2028. Still, the combination of decelerating growth, competitive pressure from larger rivals, and limited institutional accumulation has kept the stock under pressure.
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Head-to-Head Comparison
When comparing CRM and FRSH, the most immediate differentiator is scale. Salesforce generates more revenue in a single quarter than Freshworks does in an entire year, and its operating cash flow margin of roughly 39% dwarfs Freshworks' already-respectable 28%. This scale advantage translates into pricing power, ecosystem lock-in, and the ability to invest billions in AI research and development — as evidenced by the rapid rollout of Agentforce. Freshworks, by contrast, competes on simplicity and ease of adoption, targeting organizations that may find Salesforce's platform too complex or expensive.
On growth, Freshworks holds the edge in percentage terms. Its 14–16% revenue expansion outpaces Salesforce's 9–10%, though the gap is narrowing. Freshworks also benefits from a net dollar retention rate above 100%, indicating healthy upsell dynamics within its existing customer base. However, Salesforce's growth, while slower, is supported by a massive installed base, multi-year enterprise contracts, and a cRPO (current remaining performance obligation) exceeding $30 billion — providing far greater revenue visibility.
In terms of risk, CRM offers relative stability through diversification, dividend payments, and aggressive share buybacks. FRSH faces steeper competitive headwinds from both larger players like ServiceNow and Salesforce itself, as well as emerging AI-native startups. Freshworks' smaller cash reserves ($844 million) and more modest free cash flow leave less room for error if growth decelerates further. Valuation-wise, CRM trades at a P/E (price-to-earnings) ratio near 20 with a 1% dividend yield, while FRSH trades at a fraction of its IPO price, reflecting heightened uncertainty about its long-term competitive position.
Tickeron AI Verdict
Based on observable trends in relative stability, institutional support, cash flow generation, and the scale of AI monetization, Tickeron's AI-driven analysis would likely favor CRM in the current environment. While FRSH offers a compelling growth story at a discounted share price, the combination of Salesforce's entrenched enterprise relationships, accelerating Agentforce adoption, aggressive capital returns, and superior free cash flow profile creates a more consistent trend signal for algorithmic evaluation. The AI's preference would not be a definitive call on absolute returns, but rather a reflection of where momentum, risk-adjusted positioning, and fundamental breadth appear more favorable at this juncture. That said, Freshworks' improving profitability trajectory and AI product expansion could shift the calculus if execution continues to outpace expectations.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is CRM is a StrongBuy and FRSH is a StrongBuy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
CRM’s FA Score shows that 1 FA rating(s) are green whileFRSH’s FA Score has 1 green FA rating(s).
- CRM’s FA Score: 1 green, 4 red.
- FRSH’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
CRM’s TA Score shows that 5 TA indicator(s) are bullish while FRSH’s TA Score has 4 bullish TA indicator(s).
- CRM’s TA Score: 5 bullish, 4 bearish.
- FRSH’s TA Score: 4 bullish, 5 bearish.
Price Growth
CRM (@Packaged Software) experienced а -9.12% price change this week, while FRSH (@Packaged Software) price change was -10.78% for the same time period.
The average weekly price growth across all stocks in the @Packaged Software industry was -4.90%. For the same industry, the average monthly price growth was -0.31%, and the average quarterly price growth was -13.02%.
Reported Earning Dates
CRM is expected to report earnings on Sep 02, 2026.
FRSH is expected to report earnings on Aug 04, 2026.
Industries' Descriptions
@Packaged Software (-4.90% weekly)Packaged software comprises multiple software programs bundled together and sold as a group. For example, Microsoft Office includes multiple applications such as Excel, Word, and PowerPoint. In some cases, buying a bundled product is cheaper than purchasing each item individually[s20] . Microsoft Corporation, Oracle Corp. and Adobe are some major American packaged software makers.
| CRM | FRSH | CRM / FRSH | |
| Capitalization | 129B | 2.7B | 4,774% |
| EBITDA | 13.7B | 42.9M | 31,935% |
| Gain YTD | -40.460 | -20.245 | 200% |
| P/E Ratio | 18.18 | 15.91 | 114% |
| Revenue | 42.8B | 871M | 4,914% |
| Total Cash | 11.8B | 779M | 1,515% |
| Total Debt | 41.9B | 38.8M | 107,990% |
CRM | FRSH | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 14 | 72 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 14 Undervalued | 59 Fair valued | |
PROFIT vs RISK RATING 1..100 | 100 | 92 | |
SMR RATING 1..100 | 52 | 51 | |
PRICE GROWTH RATING 1..100 | 61 | 50 | |
P/E GROWTH RATING 1..100 | 95 | 21 | |
SEASONALITY SCORE 1..100 | n/a | n/a |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
CRM's Valuation (14) in the Packaged Software industry is somewhat better than the same rating for FRSH (59) in the Restaurants industry. This means that CRM’s stock grew somewhat faster than FRSH’s over the last 12 months.
FRSH's Profit vs Risk Rating (92) in the Restaurants industry is in the same range as CRM (100) in the Packaged Software industry. This means that FRSH’s stock grew similarly to CRM’s over the last 12 months.
FRSH's SMR Rating (51) in the Restaurants industry is in the same range as CRM (52) in the Packaged Software industry. This means that FRSH’s stock grew similarly to CRM’s over the last 12 months.
FRSH's Price Growth Rating (50) in the Restaurants industry is in the same range as CRM (61) in the Packaged Software industry. This means that FRSH’s stock grew similarly to CRM’s over the last 12 months.
FRSH's P/E Growth Rating (21) in the Restaurants industry is significantly better than the same rating for CRM (95) in the Packaged Software industry. This means that FRSH’s stock grew significantly faster than CRM’s over the last 12 months.
| CRM | FRSH | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 44% | 2 days ago 79% |
| Stochastic ODDS (%) | 2 days ago 67% | 2 days ago 82% |
| Momentum ODDS (%) | 2 days ago 66% | 2 days ago 78% |
| MACD ODDS (%) | 2 days ago 63% | 2 days ago 76% |
| TrendWeek ODDS (%) | 2 days ago 67% | 2 days ago 80% |
| TrendMonth ODDS (%) | 2 days ago 63% | 2 days ago 77% |
| Advances ODDS (%) | 12 days ago 70% | 9 days ago 70% |
| Declines ODDS (%) | 2 days ago 65% | 2 days ago 80% |
| BollingerBands ODDS (%) | 2 days ago 68% | 2 days ago 79% |
| Aroon ODDS (%) | 2 days ago 67% | 2 days ago 72% |
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CRM and
Correlation & Price change
A.I.dvisor indicates that over the last year, CRM has been closely correlated with NOW. These tickers have moved in lockstep 78% of the time. This A.I.-generated data suggests there is a high statistical probability that if CRM jumps, then NOW could also see price increases.
| Ticker / NAME | Correlation To CRM | 1D Price Change % | ||
|---|---|---|---|---|
| CRM | 100% | -3.72% | ||
| NOW - CRM | 78% Closely correlated | -3.69% | ||
| HUBS - CRM | 77% Closely correlated | -7.27% | ||
| WDAY - CRM | 75% Closely correlated | -3.44% | ||
| TEAM - CRM | 72% Closely correlated | -6.15% | ||
| FRSH - CRM | 71% Closely correlated | -2.88% | ||
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FRSH and
Correlation & Price change
A.I.dvisor indicates that over the last year, FRSH has been closely correlated with ASAN. These tickers have moved in lockstep 73% of the time. This A.I.-generated data suggests there is a high statistical probability that if FRSH jumps, then ASAN could also see price increases.
| Ticker / NAME | Correlation To FRSH | 1D Price Change % | ||
|---|---|---|---|---|
| FRSH | 100% | -2.88% | ||
| ASAN - FRSH | 73% Closely correlated | -4.51% | ||
| CRM - FRSH | 71% Closely correlated | -3.72% | ||
| WDAY - FRSH | 70% Closely correlated | -3.44% | ||
| TEAM - FRSH | 70% Closely correlated | -6.15% | ||
| DOCU - FRSH | 69% Closely correlated | -1.77% | ||
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