SAP vs Coupang Which Is More Promising?

SAP and Coupang are two prominent companies in the tech industry, each with its own unique business model and market positioning. SAP is a multinational software corporation specializing in enterprise resource planning and business intelligence software, while Coupang is a South Korean e-commerce giant known for its fast delivery services. Both companies have seen significant growth in their stock prices in recent years, making them attractive investment options for individuals looking to capitalize on the tech sector's potential.

SAP or Coupang?

When comparing SAP and Coupang, 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 SAP and Coupang.

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. SAP has a dividend yield of 0.84%, while Coupang has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. SAP reports a 5-year dividend growth of 8.83% year and a payout ratio of 82.11%. On the other hand, Coupang reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 SAP P/E ratio at 99.03 and Coupang's P/E ratio at 280.29. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. SAP P/B ratio is 6.80 while Coupang's P/B ratio is 10.52.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, SAP has seen a 5-year revenue growth of 0.27%, while Coupang's is 3.66%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with SAP's ROE at 7.29% and Coupang's ROE at 3.80%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $282.66 for SAP and $23.27 for Coupang. Over the past year, SAP's prices ranged from $175.08 to $293.70, with a yearly change of 67.75%. Coupang's prices fluctuated between $17.34 and $26.91, with a yearly change of 55.19%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.