Analyzing SAP (NYSE:SAP) and AvePoint (NASDAQ:AVPT)

AvePoint (NASDAQ:AVPT) and SAP (NYSE:SAP) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, valuation, institutional ownership, risk, earnings, dividends and profitability.

Earnings & Valuation

This table compares AvePoint and SAP”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AvePoint	$419.50 million	6.65	$34.80 million	$0.32	41.22
SAP	$41.63 billion	6.18	$8.10 billion	$7.96	26.32

SAP has higher revenue and earnings than AvePoint. SAP is trading at a lower price-to-earnings ratio than AvePoint, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

44.5% of AvePoint shares are held by institutional investors. 22.7% of AvePoint shares are held by company insiders. Comparatively, 7.3% of SAP 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.

Profitability

This table compares AvePoint and SAP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AvePoint	15.33%	15.97%	9.62%
SAP	20.88%	17.07%	10.61%

Analyst Ratings

This is a summary of current ratings and recommmendations for AvePoint and SAP, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AvePoint	0	6	10	0	2.62
SAP	0	8	13	1	2.68

AvePoint presently has a consensus price target of $16.44, indicating a potential upside of 24.65%. SAP has a consensus price target of $255.67, indicating a potential upside of 22.04%. Given AvePoint’s higher possible upside, equities research analysts plainly believe AvePoint is more favorable than SAP.

Volatility and Risk

AvePoint has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, SAP has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500.

Summary

SAP beats AvePoint on 9 of the 15 factors compared between the two stocks.

About AvePoint

AvePoint, Inc. provides cloud-native data management software platform in North America, Europe, Middle East, Africa, and Asia Pacific. It also offers software-as-a-service solutions and productivity applications. The company offers modularity and cloud services architecture to address critical challenges and the management of data to organizations that leverage third-party cloud vendors, including Microsoft, Salesforce, Google, AWS, Box, DropBox, and others; license and support; and maintenance services. AvePoint, Inc. was incorporated in 2001 and is headquartered in Jersey City, New Jersey.

About SAP

SAP SE, together with its subsidiaries, provides applications, technology, and services worldwide. It offers SAP S/4HANA that provides software capabilities for finance, risk and project management, procurement, manufacturing, supply chain and asset management, and research and development; SAP SuccessFactors solutions for human resources, including HR and payroll, talent and employee experience management, and people and workforce analytics; and spend management solutions that covers direct and indirect spend, travel and expense, and external workforce management. The company also provides SAP customer experience solutions; SAP Business Technology platform that enables customers and partners to build, integrate, and automate applications; and SAP Business Network, a business-to-business collaboration platform that helps digitalize key business processes across the supply chain and enables communication between trading partners. In addition, it offers SAP Signavio to help customers to discover, analyze, and understand their business process operations; SAP's industry cloud solutions that provides modular solutions addressing industry-specific functions; Taulia solutions for working capital management to help enable customers mitigate the effects of inflation by providing visibility into working capital and access to liquidity; and sustainability solutions and services. SAP SE was founded in 1972 and is headquartered in Walldorf, Germany.