Amazon.com vs SAP Which Is More Promising?

Amazon.com and SAP are two major players in the technology and e-commerce industries, each with their own unique strengths and weaknesses. While Amazon.com is renowned for its dominant position in online retail and cloud computing, SAP specializes in enterprise software and services. Investors often compare the performance of these two companies' stocks as a barometer for the overall health of the tech sector. Understanding the nuances of Amazon.com versus SAP stocks can provide valuable insights for those looking to diversify their investment portfolios.

Amazon.com or SAP?

When comparing Amazon.com and SAP, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Amazon.com and SAP.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Amazon.com has a dividend yield of -%, while SAP has a dividend yield of 1.07%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Amazon.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, SAP reports a 5-year dividend growth of 6.69% year and a payout ratio of 90.44%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Amazon.com P/E ratio at 45.08 and SAP's P/E ratio at 89.55. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Amazon.com P/B ratio is 8.68 while SAP's P/B ratio is 6.17.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Amazon.com has seen a 5-year revenue growth of 1.33%, while SAP's is 0.29%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and SAP's ROE at 6.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $209.25 for Amazon.com and $228.43 for SAP. Over the past year, Amazon.com's prices ranged from $139.52 to $215.08, with a yearly change of 54.16%. SAP's prices fluctuated between $147.60 and $243.01, with a yearly change of 64.64%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.