SAP (NYSE:SAP – Get Free Report) and Xperi (NYSE:XPER – Get Free Report) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
Valuation & Earnings
This table compares SAP and Xperi”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SAP | $41.63 billion | 6.30 | $8.10 billion | $7.96 | 26.83 |
| Xperi | $448.11 million | 0.60 | -$56.34 million | ($0.70) | -7.89 |
Institutional & Insider Ownership
94.3% of Xperi shares are owned by institutional investors. 7.3% of SAP shares are owned by company insiders. Comparatively, 3.2% of Xperi shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and recommmendations for SAP and Xperi, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SAP | 0 | 8 | 13 | 1 | 2.68 |
| Xperi | 1 | 1 | 2 | 0 | 2.25 |
SAP presently has a consensus price target of $255.67, suggesting a potential upside of 19.73%. Xperi has a consensus price target of $11.00, suggesting a potential upside of 99.10%. Given Xperi’s higher probable upside, analysts clearly believe Xperi is more favorable than SAP.
Volatility & Risk
SAP has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Xperi has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500.
Profitability
This table compares SAP and Xperi’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SAP | 20.88% | 17.07% | 10.61% |
| Xperi | -7.12% | 4.04% | 2.72% |
Summary
SAP beats Xperi on 12 of the 15 factors compared between the two stocks.
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.
About Xperi
Xperi Holding Corporation, together with its subsidiaries, operates as a consumer and entertainment product/solutions licensing company worldwide. It operates through two segments, Product, and Intellectual Property Licensing. The company invents, develops, and delivers various technologies. It licenses audio, digital radio, imaging, edge-based machine learning, and multi-channel video user experience solutions to consumer electronics customers, automotive manufacturers, or supply chain partners. The company also provides licensing to multichannel video programming distributors, OTT video service providers, consumer electronics manufacturers, social media, and other new media companies in media industry; and memory, sensors, RF component, and foundry companies in semiconductor industry. It provides its technologies under the DTS, HD Radio, IMAX Enhanced, Invensas, TiVo, and Perceive brands. The company is headquartered in San Jose, California.
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