AvePoint (NASDAQ:AVPT – Get Free Report) and SAP (NYSE:SAP – Get Free Report) are both technology companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.
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% |
Risk & Volatility
AvePoint has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, SAP has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AvePoint | $419.50 million | 6.89 | $34.80 million | $0.32 | 42.67 |
| SAP | $41.63 billion | 6.44 | $8.10 billion | $7.96 | 27.43 |
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.
Analyst Ratings
This is a breakdown of recent ratings and target prices 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 currently has a consensus price target of $16.44, indicating a potential upside of 20.41%. SAP has a consensus price target of $255.67, indicating a potential upside of 17.11%. Given AvePoint’s higher probable upside, analysts clearly believe AvePoint is more favorable than SAP.
Institutional and Insider Ownership
44.5% of AvePoint shares are owned by institutional investors. 22.7% of AvePoint shares are owned by insiders. Comparatively, 7.3% of SAP shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
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.
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