Netflix vs SAP Which Performs Better?

Netflix and SAP are two giants in the world of technology and entertainment, each with their own unique strengths and weaknesses. Netflix, the streaming service powerhouse, has revolutionized the way we consume media, making it a major player in the entertainment industry. On the other hand, SAP, a multinational software corporation, is a leader in enterprise resource planning software. Both companies have experienced significant growth in recent years, but how do their stocks compare? Let's delve into the differences and similarities between Netflix and SAP stocks.

Netflix or SAP?

When comparing Netflix 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 Netflix 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. Netflix has a dividend yield of -%, while SAP has a dividend yield of 0.97%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Netflix 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 Netflix P/E ratio at 50.57 and SAP's P/E ratio at 99.14. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Netflix P/B ratio is 17.32 while SAP's P/B ratio is 6.82.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Netflix has seen a 5-year revenue growth of 1.11%, while SAP's is -0.21%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Netflix's ROE at 35.86% and SAP's ROE at 6.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $909.62 for Netflix and $251.53 for SAP. Over the past year, Netflix's prices ranged from $461.86 to $941.75, with a yearly change of 103.90%. 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.