SAP vs TOTVS Which Performs Better?

SAP and TOTVS are two major players in the enterprise software industry, with both companies offering a wide range of solutions to businesses worldwide. SAP, a German multinational corporation, is known for its innovative software offerings in areas such as ERP, CRM, and analytics. TOTVS, on the other hand, is a Brazilian software company that specializes in providing technology solutions for small and medium-sized enterprises. Both companies have a strong market presence and loyal customer base, making them attractive investment options for those looking to capitalize on the growing demand for enterprise software solutions.

SAP or TOTVS?

When comparing SAP and TOTVS, 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 TOTVS.

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 0.96%, while TOTVS has a dividend yield of 1.65%. 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, TOTVS reports a 5-year dividend growth of 22.85% year and a payout ratio of 21.89%.

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 98.89 and TOTVS's P/E ratio at 25.02. 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 TOTVS's P/B ratio is 3.39.

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 TOTVS's is 0.58%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with SAP's ROE at 6.71% and TOTVS's ROE at 13.69%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $253.72 for SAP and R$27.30 for TOTVS. Over the past year, SAP's prices ranged from $148.38 to $256.13, with a yearly change of 72.62%. TOTVS's prices fluctuated between R$26.43 and R$35.14, with a yearly change of 32.95%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.