Financial Review: SAP SE (SAP) and QAD (QADB)
SAP SE (NYSE: SAP) and QAD (NASDAQ:QADB) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.
This is a breakdown of recent recommendations and price targets for SAP SE and QAD, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SAP SE currently has a consensus price target of $95.40, suggesting a potential downside of 13.32%. QAD has a consensus price target of $33.00, suggesting a potential upside of 18.96%. Given QAD’s stronger consensus rating and higher probable upside, analysts plainly believe QAD is more favorable than SAP SE.
Earnings & Valuation
This table compares SAP SE and QAD’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|SAP SE||$27.71 billion||4.76||$6.91 billion||$3.11||35.39|
|QAD||$290.14 million||1.84||$10.69 million||($0.94)||-29.51|
SAP SE has higher revenue and earnings than QAD. QAD is trading at a lower price-to-earnings ratio than SAP SE, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
3.6% of SAP SE shares are held by institutional investors. Comparatively, 1.8% of QAD shares are held by institutional investors. 67.4% of QAD shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Risk and Volatility
SAP SE has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, QAD has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.
SAP SE pays an annual dividend of $0.98 per share and has a dividend yield of 0.9%. QAD pays an annual dividend of $0.24 per share and has a dividend yield of 0.9%. SAP SE pays out 31.5% of its earnings in the form of a dividend. QAD pays out -25.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
This table compares SAP SE and QAD’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
SAP SE beats QAD on 11 of the 15 factors compared between the two stocks.
About SAP SE
SAP SE (SAP) is a software and service provider. The Company offers enterprise application software. The Company operates through two segments: Applications, Technology & Services segment, and the SAP Business Network segment. The Applications, Technology & Services segment is engaged in the sale of software licenses, subscriptions to its cloud applications, and related services (primarily support services and various professional services, and support services, as well as implementation services of its software products and education services on the use of its products). The SAP Business Network segment includes its cloud-based collaborative business networks and services relating to the SAP Business Network (including cloud applications, professional services and education services). Within the SAP Business Network segment, the Company markets and sells the cloud offerings developed by SAP Ariba, SAP Fieldglass and Concur.
QAD Inc. (QAD) is a provider of vertically oriented enterprise software solutions for global manufacturing companies across the automotive, life sciences, consumer products, food and beverage, high technology and industrial products industries. QAD Enterprise Applications enables measurement and control of business processes and supports operational requirements, including financials, manufacturing, demand and supply chain planning, customer management, business intelligence and business process management. QAD delivers components of its solution for a range of mobile platforms. The Company’s mobile suite includes a requisition approval solution, a mobile business intelligence solution, mobile browse capability and mobile application monitoring tools to support system administrators. Its mobile browse capability allows users to view, filter and sort data accessible through QAD Browses within QAD Enterprise Applications using mobile devices.
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