SAP vs JDE Peets Which Is a Smarter Choice?

SAP and JDE Peet's are two leading companies in the stock market, each with its own unique strengths and weaknesses. SAP, a German multinational software corporation, focuses on enterprise software solutions, while JDE Peet's, a Dutch-American coffee company, is known for its popular coffee brands. Both companies have experienced fluctuations in their stock prices, with investors weighing factors such as revenue growth, market share, and industry competition. This comparison will analyze the performance of SAP and JDE Peet's stocks to provide insights for potential investors.

SAP or JDE Peets?

When comparing SAP and JDE Peets, 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 JDE Peets.

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 0.97%, while JDE Peets has a dividend yield of 3.7%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. SAP reports a 5-year dividend growth of 6.69% year and a payout ratio of 90.44%. On the other hand, JDE Peets reports a 5-year dividend growth of 0.00% year and a payout ratio of 69.21%.

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 98.43 and JDE Peets's P/E ratio at 14.98. 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 6.77 while JDE Peets's P/B ratio is 0.85.

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 -0.21%, while JDE Peets's is 0.25%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with SAP's ROE at 6.71% and JDE Peets's ROE at 5.62%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $251.86 for SAP and €18.89 for JDE Peets. Over the past year, SAP's prices ranged from $148.38 to $256.13, with a yearly change of 72.62%. JDE Peets's prices fluctuated between €18.10 and €25.04, with a yearly change of 38.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.