PHI vs SAP Which Is a Better Investment?

PHI vs SAP stocks represent two giants in the technology and software industries, with each company operating in different sectors. PHI, or PLDT Inc., is a telecommunications company based in the Philippines, while SAP SE is a multinational software corporation based in Germany. Both companies have shown steady growth and financial stability in recent years, attracting investors looking to capitalize on the booming tech market. This comparison will delve into the key differences and similarities between PHI and SAP stocks, helping investors make informed decisions.

PHI or SAP?

When comparing PHI 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 PHI 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. PHI 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. PHI reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.47%. 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 PHI P/E ratio at 48067.05 and SAP's P/E ratio at 98.97. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. PHI P/B ratio is -100769.09 while SAP's P/B ratio is 6.81.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, PHI has seen a 5-year revenue growth of 269.31%, while SAP's is -0.21%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with PHI's ROE at -235.74% and SAP's ROE at 6.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $24.00 for PHI and $253.72 for SAP. Over the past year, PHI's prices ranged from $20.50 to $40.00, with a yearly change of 95.12%. 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.