Waste Management vs SAP Which Outperforms?

Waste Management and SAP are two leading companies operating in different industries but both providing essential services to businesses and consumers. Waste Management focuses on waste collection, recycling, and disposal solutions, while SAP offers enterprise software solutions for businesses. Both companies have seen steady growth in their stocks over the years, attracting investors seeking stable returns. This comparison between the two companies' stocks can provide insights into the resilience and growth prospects of companies operating in these respective industries.

Waste Management or SAP?

When comparing Waste Management and SAP, 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 Waste Management and SAP.

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. Waste Management has a dividend yield of 1.41%, while SAP has a dividend yield of 0.97%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Waste Management reports a 5-year dividend growth of 8.52% year and a payout ratio of 45.06%. On the other hand, SAP reports a 5-year dividend growth of 6.69% year and a payout ratio of 90.44%.

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 Waste Management P/E ratio at 32.40 and SAP's P/E ratio at 99.00. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Waste Management P/B ratio is 10.72 while SAP's P/B ratio is 6.81.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Waste Management has seen a 5-year revenue growth of 0.45%, while SAP's is -0.21%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Waste Management's ROE at 35.91% and SAP's ROE at 6.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $212.21 for Waste Management and $251.53 for SAP. Over the past year, Waste Management's prices ranged from $173.01 to $230.39, with a yearly change of 33.17%. SAP's prices fluctuated between $148.38 and $256.13, with a yearly change of 72.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.