Expedia vs SAP Which Is More Profitable?

Expedia Group Inc. and SAP SE are two prominent players in the technology and travel industries, each operating with their own unique business models and strategies. Expedia, a leading online travel agency, focuses on connecting travelers with accommodations, flights, and activities, while SAP, a multinational software corporation, specializes in providing enterprise software solutions. Both companies have experienced fluctuating stock performances in recent years, presenting investors with opportunities and challenges in navigating the dynamic and competitive markets.

Expedia or SAP?

When comparing Expedia 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 Expedia 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. Expedia has a dividend yield of -%, while SAP has a dividend yield of 0.98%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Expedia 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 Expedia P/E ratio at 22.91 and SAP's P/E ratio at 98.12. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Expedia P/B ratio is 18.49 while SAP's P/B ratio is 6.75.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Expedia has seen a 5-year revenue growth of 0.18%, while SAP's is -0.21%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Expedia's ROE at 92.08% and SAP's ROE at 6.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $187.71 for Expedia and $251.30 for SAP. Over the past year, Expedia's prices ranged from $107.25 to $192.34, with a yearly change of 79.34%. SAP's prices fluctuated between $148.38 and $256.13, with a yearly change of 72.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.