SAP vs SAS Which Should You Buy?

Both SAP and SAS are leading software companies in the tech industry, known for their innovative products and strong financial performance. SAP, based in Germany, focuses on enterprise software solutions, while SAS, based in the US, specializes in analytics software. Investors often compare the two companies' stocks, analyzing their historical performance, growth prospects, and market trends to make informed investment decisions. Understanding the differences and similarities between SAP and SAS stocks is crucial for building a successful investment portfolio.

SAP or SAS?

When comparing SAP and SAS, 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 SAS.

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 SAS 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 6.69% year and a payout ratio of 90.44%. On the other hand, SAS 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 98.43 and SAS's P/E ratio at -0.00. 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 SAS's P/B ratio is -0.00.

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 SAS's is -0.79%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with SAP's ROE at 6.71% and SAS's ROE at 61.55%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $251.86 for SAP and kr0.00 for SAS. Over the past year, SAP's prices ranged from $148.38 to $256.13, with a yearly change of 72.62%. SAS's prices fluctuated between kr0.00 and kr0.47, with a yearly change of 17838.46%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.