Hostelworld vs SAP Which Is More Attractive?

Hostelworld Group and SAP SE are two companies that operate in vastly different industries. Hostelworld is a leading global online booking platform for hostels and budget accommodations, while SAP is a multinational software corporation specializing in enterprise software solutions. While Hostelworld may be more directly impacted by economic cycles and travel trends, SAP's performance is tied more to technology trends and corporate spending. Investors looking to diversify their portfolio may consider these two stocks for exposure to different sectors of the market.

Hostelworld or SAP?

When comparing Hostelworld 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 Hostelworld 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. Hostelworld 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. Hostelworld 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 Hostelworld P/E ratio at 14.44 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. Hostelworld P/B ratio is 3.50 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, Hostelworld has seen a 5-year revenue growth of -0.13%, while SAP's is -0.21%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Hostelworld's ROE at 24.88% and SAP's ROE at 6.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €1.70 for Hostelworld and $251.30 for SAP. Over the past year, Hostelworld's prices ranged from €1.48 to €2.00, with a yearly change of 35.14%. 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.