SAP vs Waste Management Which Is More Favorable?

SAP and Waste Management are two companies operating in vastly different industries, but both are key players in their respective sectors. SAP is a global leader in enterprise software solutions, while Waste Management is a leading provider of waste management and environmental services. Both companies have experienced growth in recent years, but their stock performance may vary due to the differences in their industry dynamics and market outlook. Understanding the strengths and weaknesses of each company can help investors make informed decisions about their stock portfolios.

SAP or Waste Management?

When comparing SAP and Waste Management, 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 Waste Management.

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 0.99%, while Waste Management has a dividend yield of 1.4%. 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, Waste Management reports a 5-year dividend growth of 8.52% year and a payout ratio of 45.06%.

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 97.66 and Waste Management's P/E ratio at 32.60. 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 6.72 while Waste Management's P/B ratio is 10.79.

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 Waste Management's is 0.45%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with SAP's ROE at 6.71% and Waste Management's ROE at 35.91%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $246.28 for SAP and $213.52 for Waste Management. Over the past year, SAP's prices ranged from $148.38 to $256.13, with a yearly change of 72.62%. Waste Management's prices fluctuated between $173.01 and $230.39, with a yearly change of 33.17%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.