Goldman Sachs vs SAP Which Performs Better?

Goldman Sachs and SAP are two prominent companies with successful track records in the financial and technology sectors, respectively. Both companies have seen fluctuations in their stock prices over the years due to various market factors and industry trends. While Goldman Sachs is known for its investment banking and financial services, SAP specializes in enterprise software solutions. Investors closely follow the performance of both companies, analyzing their financial reports, strategic decisions, and market positioning to make informed investment decisions.

Goldman Sachs or SAP?

When comparing Goldman Sachs 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 Goldman Sachs 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. Goldman Sachs has a dividend yield of 1.97%, while SAP has a dividend yield of 0.98%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Goldman Sachs reports a 5-year dividend growth of 27.23% year and a payout ratio of 36.22%. 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 Goldman Sachs P/E ratio at 15.61 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. Goldman Sachs P/B ratio is 1.57 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, Goldman Sachs has seen a 5-year revenue growth of 0.57%, while SAP's is -0.21%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goldman Sachs's ROE at 10.23% and SAP's ROE at 6.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $583.76 for Goldman Sachs and $251.30 for SAP. Over the past year, Goldman Sachs's prices ranged from $349.58 to $612.73, with a yearly change of 75.28%. 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.