ERIC vs. SAP: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ERIC and SAP, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
Both ERIC and SAP are American Depositary Receipts (ADRs). This provides U.S. investors with straightforward access to investing in these foreign-listed companies.
| Symbol | ERIC | SAP |
|---|---|---|
| Company Name | Telefonaktiebolaget LM Ericsson (publ) | SAP SE |
| Country | Sweden | Germany |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Communications Equipment | Software |
| Market Capitalization | 32.45 billion USD | 280.33 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | August 24, 1981 | September 18, 1995 |
| Security Type | ADR | ADR |
Historical Performance
This chart compares the performance of ERIC and SAP by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | ERIC | SAP |
|---|---|---|
| 5-Day Price Return | 0.65% | -4.63% |
| 13-Week Price Return | 26.48% | -12.62% |
| 26-Week Price Return | 13.56% | -21.92% |
| 52-Week Price Return | 6.36% | -5.87% |
| Month-to-Date Return | -2.96% | -7.77% |
| Year-to-Date Return | 3.43% | -12.40% |
| 10-Day Avg. Volume | 5.25M | 1.25M |
| 3-Month Avg. Volume | 6.46M | 1.42M |
| 3-Month Volatility | 40.31% | 28.44% |
| Beta | 0.73 | 1.00 |
Profitability
Return on Equity (TTM)
ERIC
26.66%
Communications Equipment Industry
- Max
- 31.28%
- Q3
- 24.67%
- Median
- 13.12%
- Q1
- 4.60%
- Min
- -12.73%
In the upper quartile for the Communications Equipment industry, ERIC’s Return on Equity of 26.66% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
SAP
16.19%
Software Industry
- Max
- 65.88%
- Q3
- 22.54%
- Median
- 10.46%
- Q1
- -6.54%
- Min
- -41.05%
SAP’s Return on Equity of 16.19% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
ERIC
10.26%
Communications Equipment Industry
- Max
- 28.72%
- Q3
- 14.02%
- Median
- 5.41%
- Q1
- 2.50%
- Min
- -13.11%
ERIC’s Net Profit Margin of 10.26% is aligned with the median group of its peers in the Communications Equipment industry. This indicates its ability to convert revenue into profit is typical for the sector.
SAP
19.41%
Software Industry
- Max
- 53.50%
- Q3
- 20.30%
- Median
- 9.60%
- Q1
- -4.98%
- Min
- -41.00%
SAP’s Net Profit Margin of 19.41% is aligned with the median group of its peers in the Software industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
ERIC
14.74%
Communications Equipment Industry
- Max
- 33.69%
- Q3
- 15.81%
- Median
- 6.02%
- Q1
- 3.00%
- Min
- -4.94%
ERIC’s Operating Profit Margin of 14.74% is around the midpoint for the Communications Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.
SAP
25.46%
Software Industry
- Max
- 61.99%
- Q3
- 23.67%
- Median
- 10.93%
- Q1
- -3.57%
- Min
- -40.19%
An Operating Profit Margin of 25.46% places SAP in the upper quartile for the Software industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | ERIC | SAP |
|---|---|---|
| Return on Equity (TTM) | 26.66% | 16.19% |
| Return on Assets (TTM) | 8.77% | 9.89% |
| Net Profit Margin (TTM) | 10.26% | 19.41% |
| Operating Profit Margin (TTM) | 14.74% | 25.46% |
| Gross Profit Margin (TTM) | 47.62% | 73.83% |
Financial Strength
Current Ratio (MRQ)
ERIC
1.17
Communications Equipment Industry
- Max
- 3.28
- Q3
- 2.10
- Median
- 1.52
- Q1
- 1.17
- Min
- 0.91
ERIC’s Current Ratio of 1.17 aligns with the median group of the Communications Equipment industry, indicating that its short-term liquidity is in line with its sector peers.
SAP
1.11
Software Industry
- Max
- 4.01
- Q3
- 2.27
- Median
- 1.50
- Q1
- 1.03
- Min
- 0.25
SAP’s Current Ratio of 1.11 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
ERIC
0.43
Communications Equipment Industry
- Max
- 1.44
- Q3
- 0.96
- Median
- 0.43
- Q1
- 0.21
- Min
- 0.00
ERIC’s Debt-to-Equity Ratio of 0.43 is typical for the Communications Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
SAP
0.21
Software Industry
- Max
- 2.04
- Q3
- 0.86
- Median
- 0.29
- Q1
- 0.00
- Min
- 0.00
SAP’s Debt-to-Equity Ratio of 0.21 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
ERIC
3.82
Communications Equipment Industry
- Max
- 55.49
- Q3
- 34.19
- Median
- 8.92
- Q1
- 3.73
- Min
- -9.94
ERIC’s Interest Coverage Ratio of 3.82 is positioned comfortably within the norm for the Communications Equipment industry, indicating a standard and healthy capacity to cover its interest payments.
SAP
32.64
Software Industry
- Max
- 89.65
- Q3
- 33.82
- Median
- 1.59
- Q1
- -10.48
- Min
- -71.23
SAP’s Interest Coverage Ratio of 32.64 is positioned comfortably within the norm for the Software industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ERIC | SAP |
|---|---|---|
| Current Ratio (MRQ) | 1.17 | 1.11 |
| Quick Ratio (MRQ) | 0.94 | 1.11 |
| Debt-to-Equity Ratio (MRQ) | 0.43 | 0.21 |
| Interest Coverage Ratio (TTM) | 3.82 | 32.64 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
ERIC
2.99%
Communications Equipment Industry
- Max
- 2.99%
- Q3
- 2.30%
- Median
- 0.91%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.99%, ERIC offers a more attractive income stream than most of its peers in the Communications Equipment industry, signaling a strong commitment to shareholder returns.
SAP
1.11%
Software Industry
- Max
- 0.34%
- Q3
- 0.17%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
SAP’s Dividend Yield of 1.11% is exceptionally high, placing it well above the typical range for the Software industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
Dividend Payout Ratio (TTM)
ERIC
45.50%
Communications Equipment Industry
- Max
- 111.16%
- Q3
- 61.16%
- Median
- 30.78%
- Q1
- 0.00%
- Min
- 0.00%
ERIC’s Dividend Payout Ratio of 45.50% is within the typical range for the Communications Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
SAP
161.64%
Software Industry
- Max
- 12.76%
- Q3
- 6.56%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
At 161.64%, SAP’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Software industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.
Dividend at a Glance
| Symbol | ERIC | SAP |
|---|---|---|
| Dividend Yield (TTM) | 2.99% | 1.11% |
| Dividend Payout Ratio (TTM) | 45.50% | 161.64% |
Valuation
Price-to-Earnings Ratio (TTM)
ERIC
12.67
Communications Equipment Industry
- Max
- 74.67
- Q3
- 56.42
- Median
- 31.00
- Q1
- 15.93
- Min
- 3.89
In the lower quartile for the Communications Equipment industry, ERIC’s P/E Ratio of 12.67 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
SAP
34.79
Software Industry
- Max
- 142.78
- Q3
- 72.24
- Median
- 36.21
- Q1
- 24.24
- Min
- 4.55
SAP’s P/E Ratio of 34.79 is within the middle range for the Software industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
ERIC
1.30
Communications Equipment Industry
- Max
- 11.84
- Q3
- 5.68
- Median
- 2.55
- Q1
- 1.24
- Min
- 0.40
ERIC’s P/S Ratio of 1.30 aligns with the market consensus for the Communications Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
SAP
6.75
Software Industry
- Max
- 20.79
- Q3
- 12.71
- Median
- 6.75
- Q1
- 4.56
- Min
- 0.87
SAP’s P/S Ratio of 6.75 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
ERIC
2.55
Communications Equipment Industry
- Max
- 6.02
- Q3
- 6.01
- Median
- 3.83
- Q1
- 2.41
- Min
- 0.42
ERIC’s P/B Ratio of 2.55 is within the conventional range for the Communications Equipment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
SAP
6.54
Software Industry
- Max
- 30.49
- Q3
- 14.84
- Median
- 8.09
- Q1
- 4.32
- Min
- 0.38
SAP’s P/B Ratio of 6.54 is within the conventional range for the Software industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | ERIC | SAP |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 12.67 | 34.79 |
| Price-to-Sales Ratio (TTM) | 1.30 | 6.75 |
| Price-to-Book Ratio (MRQ) | 2.55 | 6.54 |
| Price-to-Free Cash Flow Ratio (TTM) | 10.27 | 33.75 |