QUALCOMM vs SAP Which Performs Better?

Qualcomm and SAP are two prominent companies in the technology sector, each with a strong presence in their respective markets. Qualcomm is a leading manufacturer of semiconductors and telecommunications equipment, while SAP is a global software company known for its enterprise resource planning solutions. Both companies have seen fluctuations in their stock prices over the years, with Qualcomm's stock experiencing volatility due to changes in the mobile technology industry, and SAP's stock performance influenced by shifts in the software market. Investors interested in these stocks should carefully consider the opportunities and risks associated with each company before making investment decisions.

QUALCOMM or SAP?

When comparing QUALCOMM 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 QUALCOMM 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. QUALCOMM has a dividend yield of 2.11%, while SAP has a dividend yield of 0.97%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. QUALCOMM reports a 5-year dividend growth of 5.33% year and a payout ratio of 36.35%. 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 QUALCOMM P/E ratio at 17.43 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. QUALCOMM P/B ratio is 6.73 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, QUALCOMM has seen a 5-year revenue growth of 1.06%, while SAP's is -0.21%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with QUALCOMM 's ROE at 41.20% and SAP's ROE at 6.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $156.63 for QUALCOMM and $251.53 for SAP. Over the past year, QUALCOMM 's prices ranged from $134.94 to $230.63, with a yearly change of 70.91%. 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.