Meta vs SAP

Meta Platforms Inc., formerly known as Facebook, has long been considered a tech giant in the social media industry. Its stock has experienced significant growth over the years, making it a popular choice among investors. On the other hand, SAP SE is a global software company that specializes in enterprise applications, analytics, and cloud solutions. While both companies operate in the tech sector, they cater to different markets and have unique business models. Investors may choose between Meta and SAP stocks based on their investment goals and risk tolerance.

Meta or SAP?

When comparing Meta 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 Meta 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. Meta has a dividend yield of -%, while SAP has a dividend yield of 1.04%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Meta 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 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 Meta P/E ratio at -3.83 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. Meta P/B ratio is 0.22 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, Meta has seen a 5-year revenue growth of -1.00%, while SAP's is 0.29%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Meta's ROE at -5.84% and SAP's ROE at 6.21%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿0.14 for Meta and $227.82 for SAP. Over the past year, Meta's prices ranged from ฿0.11 to ฿0.25, with a yearly change of 127.27%. 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.