SAP vs WPP Which Is Superior?

SAP SE and WPP plc are two prominent companies operating in different sectors of the market - SAP being a German software corporation specializing in enterprise software and technology solutions, while WPP is a British multinational advertising and public relations company. Both companies have seen fluctuations in their stock performance due to various factors such as market trends, economic conditions, and internal operations. Investors looking to diversify their portfolios may consider comparing and analyzing the potential of SAP vs WPP stocks to make informed investment decisions.

SAP or WPP?

When comparing SAP and WPP, 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 WPP.

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 WPP has a dividend yield of 3.53%. 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, WPP reports a 5-year dividend growth of -9.86% year and a payout ratio of 207.87%.

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 99.00 and WPP's P/E ratio at 234.21. 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 6.81 while WPP's P/B ratio is 13.62.

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 WPP's is 0.55%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with SAP's ROE at 6.71% and WPP's ROE at 5.92%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $251.53 for SAP and $55.75 for WPP. Over the past year, SAP's prices ranged from $148.38 to $256.13, with a yearly change of 72.62%. WPP's prices fluctuated between $43.02 and $57.37, with a yearly change of 33.36%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.