Shopify Inc. (SHOP)vs Salesforce, Inc. (CRM)

Quick verdict

Ninety-eight times earnings against twenty-four: at the 4 September 2026 close Shopify trades on a trailing P/E of 98.0 while Salesforce sits at 23.7, and that single gap frames everything else on this page. The same divide appears in cash terms — a free cash flow yield of 1.3% at Shopify versus 7.1% at Salesforce. What buyers are paying for differs too: Shopify grew revenue at a 27.3% compound rate over the three fiscal years to 2025, roughly three times Salesforce's 9.8% pace to fiscal 2026. Our factor scoring lands 4-2 in Salesforce's favour, with valuation and shareholder income clearly its own and growth, quality, balance sheet and momentum all judged too close to call. Shopify is tagged high-growth; Salesforce reads as a blend of moderate growth, cash generation and capital returns.

At-a-glance comparison

Business model and revenue mix

Two application-software businesses, but with very different customers and revenue mechanics. Shopify supplies the platform merchants use to run online and in-person stores, layering payments and merchant financing on top of subscriptions — a model that carries transaction economics and shows up in a 47.8% gross margin on revenue of $13.3bn in the twelve months to June 2026. Salesforce sells cloud-based customer-relationship management plus data, analytics and AI tooling to enterprises on subscription, generating $43.9bn of revenue in the twelve months to July 2026 at a 77.3% gross margin. Salesforce is the larger house by some distance — revenue roughly three times Shopify's — and the margin structure reflects pure software licensing rather than a blended platform-and-payments mix. Both are classified in Software—Application; Shopify lists on Nasdaq, Salesforce on the NYSE.

Valuation

On every multiple supplied, Salesforce is the cheaper share and our valuation verdict goes to it. Price-to-sales stands at 4.9 versus Shopify's 14.2, price-to-book at 5.6 against 14.9, and the trailing P/E gap is the widest of the three at 23.7 versus 98.0. Salesforce also carries an EV/EBITDA of 23.9 — a figure not available for Shopify — and a free cash flow yield of 7.1% against 1.3%. The PEG of 0.1 flatters Salesforce badly and should be treated with care: it is built on a 233.7% three-year EPS compound rate measured from fiscal 2023, a depressed starting point rather than a sustainable run rate. Market values are closer than the multiples imply — $188.3bn for Shopify, $213.3bn for Salesforce — because Salesforce earns far more on a much bigger revenue base.

Growth profile

Growth is scored a tie, and the reason is that each company leads on a different measure. Shopify owns the top line: revenue compounded at 27.3% over the three fiscal years to 2025 and 31.6% over five years from fiscal 2020, against 9.8% and 14.3% for Salesforce to fiscal 2026 from base years 2023 and 2021. Earnings tell the reverse story. Shopify's five-year EPS compound rate is negative at -18.3%, and no three-year figure is meaningful given the swing in profitability across that span. Salesforce shows 12.2% five-year EPS growth and the headline 233.7% three-year figure off the low fiscal 2023 base — impressive arithmetic, but a recovery rather than a trend. Revenue momentum sits with Shopify; earnings trajectory sits with Salesforce, hence no winner.

Profitability and quality

Quality is likewise too close to call once the composition is unpicked. Salesforce converts revenue better at every line: a 77.3% gross margin, 19.9% operating margin and 22.0% net margin, producing $8.7bn of operating profit and $9.7bn of net income in the twelve months to July 2026. Shopify's 47.8% gross margin reflects the payments component of its model, and it flows through to a 13.9% operating margin and 14.5% net margin — $1.8bn of operating profit and $1.9bn of net income to June 2026, with the small excess of net over operating income coming from non-operating items. Cash conversion favours Salesforce in absolute terms, at $15.2bn of free cash flow against Shopify's $2.4bn, though both exceed reported net income. Return on equity is close: 19.4% versus 15.5%.

Balance-sheet risk

The balance-sheet verdict is a tie because each structure has an obvious strength and an obvious cost. Shopify held $1.7bn of cash at 30 June 2026 against a current ratio of 5.35 — ample short-term cover — and no total debt figure is supplied, so gearing cannot be assessed here. Salesforce carried $8.3bn of cash at 31 July 2026 alongside $39.3bn of total debt, net debt at 3.03 times EBITDA and a current ratio of 0.84, meaning current liabilities exceed current assets. That leverage is serviced comfortably: interest cover stands at 8.92 times, and free cash flow of $15.2bn dwarfs the annual interest burden implied. Shopify's liquidity is the more conservative; Salesforce's leverage is real but supported by far larger cash generation. Neither profile looks strained on the figures available.

Price performance and shareholder returns

Shareholder distributions separate these two completely, and the income verdict goes to Salesforce. It paid $1.84 per share over the twelve months to July 2026 for a 0.71% yield on a 15.7% payout ratio, leaving substantial cover, and repurchased stock equivalent to a 16.4% buyback yield — an unusually heavy programme that has materially shrunk the share count to 823 million. That buyback is worth flagging when reading returns on capital: Salesforce's 19.4% return on equity is lifted by a smaller equity base, and its 9.8% return on invested capital is the more honest measure of operating returns. Shopify pays no dividend and reports a zero buyback yield, retaining all cash to fund growth — consistent with its high-growth tag, but it means total return there depends entirely on share price movement.

Which stock fits which investor

The split is fairly clean. Investors prioritising revenue expansion are pointed to Shopify, whose 27.3% three-year and 31.6% five-year revenue compound rates have no equivalent at Salesforce — accepting that this is paid for at 98.0 times earnings and 14.2 times sales, with no cash returned. Those weighting valuation or income are directed to Salesforce: 23.7 times earnings, a 7.1% free cash flow yield, a 0.71% dividend and a 16.4% buyback yield. On quality the data does not favour either — Salesforce's superior margins are offset by Shopify's cleaner liquidity position and faster growth. Overall scoring is 4-2 to Salesforce, driven by valuation and income rather than by any weakness in Shopify's operations. Style tags summarise it: high-growth versus blend. Neither profile is objectively better; they suit different mandates.

• Value: CRM
• Growth: SHOP
• Income: CRM
• Quality: Too close to call

Frequently asked questions

Why is Shopify's P/E so much higher than Salesforce's?

At the 4 September 2026 close Shopify traded at 98.0 times trailing earnings versus 23.7 for Salesforce. The gap reflects earnings scale relative to market value: Shopify earned $1.9bn in the twelve months to June 2026 on a $188.3bn market capitalisation, while Salesforce earned $9.7bn to July 2026 on $213.3bn. Revenue growth of 27.3% over three years is the offsetting factor priced in.

Which company generates more free cash flow?

Salesforce, by a wide margin in absolute terms — $15.2bn in the twelve months to July 2026 against Shopify's $2.4bn to June 2026. Relative to price the gap is equally stark: a 7.1% free cash flow yield versus 1.3%.

Does either pay a dividend?

Only Salesforce. It paid $1.84 per share over the twelve months to July 2026, a 0.71% yield, on a payout ratio of 15.7%. Shopify pays no dividend and reports no buybacks, retaining all cash internally.

Is Salesforce's 233.7% three-year EPS growth rate reliable?

It should be read with caution. That figure is measured from fiscal 2023 to fiscal 2026 and starts from a depressed earnings base, so it describes a recovery rather than an ongoing rate. The five-year compound EPS rate of 12.23% is the steadier reference point.

How do the balance sheets compare?

Shopify held $1.7bn of cash at 30 June 2026 with a current ratio of 5.35. Salesforce held $8.3bn against $39.3bn of total debt at 31 July 2026, with net debt at 3.03 times EBITDA, a current ratio of 0.84 and interest cover of 8.92 times. We score this factor a tie.

Related comparisons

• MSFT vs CRM
• PLTR vs CRM
• UBER vs CRM