SAP (NYSE:SAP) vs. eGain (NASDAQ:EGAN) Head-To-Head Contrast

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for eGain and SAP, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
eGain	0	4	0	0	2.00
SAP	0	7	13	1	2.71

eGain currently has a consensus price target of $6.50, indicating a potential upside of 17.12%. SAP has a consensus price target of $264.71, indicating a potential upside of 18.08%. Given SAP’s stronger consensus rating and higher possible upside, analysts plainly believe SAP is more favorable than eGain.

Risk and Volatility

eGain has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, SAP has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.

Valuation & Earnings

This table compares eGain and SAP”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
eGain	$91.14 million	1.54	$8.88 million	$0.32	17.34
SAP	$41.63 billion	6.62	$8.10 billion	$7.96	28.16

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
eGain	9.74%	11.75%	7.06%
SAP	20.88%	17.07%	10.61%

Institutional and Insider Ownership

53.9% of eGain shares are held by institutional investors. 38.7% of eGain shares are held by company insiders. Comparatively, 7.3% of SAP shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

SAP beats eGain on 13 of the 15 factors compared between the two stocks.

About eGain

eGain Corporation develops, licenses, implements, and supports customer service infrastructure software solutions in North America, Europe, the Middle East, Africa, and the Asia Pacific. It provides eGain Knowledge Hub, which helps businesses to centralize knowledge, policies, procedures, situational expertise, best-practices, while delivering guided, and personalized solutions to customers and agents; eGain Conversation Hub for digital-first, omnichannel interaction management within a modern, purpose-built desktop; and eGain Analytics Hub enables clients to measure, manage, and optimize omnichannel service operations and knowledge. The company also offers subscription services that provides customers with access to its software on a cloud-based platform; and professional services, such as consulting and implementation, training, and managed services. It serves customers in various industry sectors, including the financial services, telecommunications, retail, government, healthcare, and utilities. The company was incorporated in 1997 and is headquartered in Sunnyvale, California.

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.