Lawson vs SAP

Lawson and SAP are two major players in the enterprise software industry, both offering a wide range of solutions tailored to different business needs. Both companies have strong financial standings and a history of providing innovative and reliable products to their clients. While Lawson has a focus on industries like healthcare and retail, SAP is known for its comprehensive suite of business applications that cater to various sectors. Investors often compare the performance of Lawson and SAP stocks to make informed decisions about their investment portfolios.

Lawson or SAP?

When comparing Lawson 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 Lawson 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. Lawson has a dividend yield of 1.28%, while SAP has a dividend yield of 1.04%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Lawson reports a 5-year dividend growth of -5.47% year and a payout ratio of 36.33%. On the other hand, SAP reports a 5-year dividend growth of 6.69% year and a payout ratio of 96.76%.

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 Lawson P/E ratio at 19.52 and SAP's P/E ratio at 92.76. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Lawson P/B ratio is 3.42 while SAP's P/B ratio is 5.90.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Lawson has seen a 5-year revenue growth of 0.55%, while SAP's is 0.29%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Lawson's ROE at 18.54% and SAP's ROE at 6.21%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥10330.00 for Lawson and $227.82 for SAP. Over the past year, Lawson's prices ranged from ¥6585.00 to ¥10365.00, with a yearly change of 57.40%. SAP's prices fluctuated between $127.30 and $232.23, with a yearly change of 82.43%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.