MS vs. SAP: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at MS and SAP, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
MS is a standard domestic listing, while SAP trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.
| Symbol | MS | SAP |
|---|---|---|
| Company Name | Morgan Stanley | SAP SE |
| Country | United States | Germany |
| GICS Sector | Financials | Information Technology |
| GICS Industry | Capital Markets | Software |
| Market Capitalization | 235.70 billion USD | 314.74 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | February 23, 1993 | September 18, 1995 |
| Security Type | Common Stock | ADR |
Historical Performance
This chart compares the performance of MS 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 | MS | SAP |
|---|---|---|
| 5-Day Price Return | 2.48% | -1.71% |
| 13-Week Price Return | 16.94% | -11.32% |
| 26-Week Price Return | 4.95% | -15.82% |
| 52-Week Price Return | 46.83% | 19.77% |
| Month-to-Date Return | 3.64% | -7.26% |
| Year-to-Date Return | 17.44% | -1.57% |
| 10-Day Avg. Volume | 4.69M | 1.49M |
| 3-Month Avg. Volume | 5.55M | 1.55M |
| 3-Month Volatility | 17.61% | 25.76% |
| Beta | 1.34 | 0.99 |
Profitability
Return on Equity (TTM)
MS
13.95%
Capital Markets Industry
- Max
- 38.97%
- Q3
- 21.61%
- Median
- 13.77%
- Q1
- 8.31%
- Min
- -4.25%
MS’s Return on Equity of 13.95% is on par with the norm for the Capital Markets industry, indicating its profitability relative to shareholder equity is typical for the sector.
SAP
15.09%
Software Industry
- Max
- 59.01%
- Q3
- 21.98%
- Median
- 7.15%
- Q1
- -11.12%
- Min
- -51.24%
SAP’s Return on Equity of 15.09% 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)
MS
13.06%
Capital Markets Industry
- Max
- 66.67%
- Q3
- 35.11%
- Median
- 23.49%
- Q1
- 13.63%
- Min
- -15.18%
Falling into the lower quartile for the Capital Markets industry, MS’s Net Profit Margin of 13.06% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
SAP
18.23%
Software Industry
- Max
- 48.14%
- Q3
- 18.23%
- Median
- 5.60%
- Q1
- -9.22%
- Min
- -49.36%
SAP’s Net Profit Margin of 18.23% 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)
MS
17.07%
Capital Markets Industry
- Max
- 86.40%
- Q3
- 46.46%
- Median
- 32.80%
- Q1
- 18.32%
- Min
- -21.87%
MS’s Operating Profit Margin of 17.07% is in the lower quartile for the Capital Markets industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
SAP
25.13%
Software Industry
- Max
- 57.34%
- Q3
- 20.60%
- Median
- 7.84%
- Q1
- -8.72%
- Min
- -51.37%
An Operating Profit Margin of 25.13% 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 | MS | SAP |
|---|---|---|
| Return on Equity (TTM) | 13.95% | 15.09% |
| Return on Assets (TTM) | 1.15% | 9.09% |
| Net Profit Margin (TTM) | 13.06% | 18.23% |
| Operating Profit Margin (TTM) | 17.07% | 25.13% |
| Gross Profit Margin (TTM) | 54.42% | 73.80% |
Financial Strength
Current Ratio (MRQ)
MS
0.29
Capital Markets Industry
- Max
- 3.76
- Q3
- 1.89
- Median
- 1.01
- Q1
- 0.54
- Min
- -0.41
For the Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
SAP
1.03
Software Industry
- Max
- 3.83
- Q3
- 2.31
- Median
- 1.45
- Q1
- 1.03
- Min
- 0.24
SAP’s Current Ratio of 1.03 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)
MS
7.68
Capital Markets Industry
- Max
- 6.62
- Q3
- 2.84
- Median
- 1.02
- Q1
- 0.32
- Min
- 0.00
The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Capital Markets industry.
SAP
0.21
Software Industry
- Max
- 2.14
- Q3
- 0.90
- 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)
MS
1.25
Capital Markets Industry
- Max
- 126.03
- Q3
- 60.98
- Median
- 11.77
- Q1
- 4.95
- Min
- -36.26
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Capital Markets industry.
SAP
32.64
Software Industry
- Max
- 67.02
- Q3
- 19.86
- Median
- 0.70
- Q1
- -12.50
- Min
- -53.00
SAP’s Interest Coverage Ratio of 32.64 is in the upper quartile for the Software industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | MS | SAP |
|---|---|---|
| Current Ratio (MRQ) | 0.29 | 1.03 |
| Quick Ratio (MRQ) | 0.29 | 1.03 |
| Debt-to-Equity Ratio (MRQ) | 7.68 | 0.21 |
| Interest Coverage Ratio (TTM) | 1.25 | 32.64 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
MS
2.78%
Capital Markets Industry
- Max
- 10.26%
- Q3
- 4.86%
- Median
- 2.78%
- Q1
- 1.22%
- Min
- 0.00%
MS’s Dividend Yield of 2.78% is consistent with its peers in the Capital Markets industry, providing a dividend return that is standard for its sector.
SAP
0.99%
Software Industry
- Max
- 0.08%
- Q3
- 0.03%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
SAP’s Dividend Yield of 0.99% 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)
MS
43.20%
Capital Markets Industry
- Max
- 200.72%
- Q3
- 101.92%
- Median
- 57.97%
- Q1
- 32.36%
- Min
- 0.00%
MS’s Dividend Payout Ratio of 43.20% is within the typical range for the Capital Markets industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
SAP
161.64%
Software Industry
- Max
- 1.32%
- Q3
- 0.53%
- 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 | MS | SAP |
|---|---|---|
| Dividend Yield (TTM) | 2.78% | 0.99% |
| Dividend Payout Ratio (TTM) | 43.20% | 161.64% |
Valuation
Price-to-Earnings Ratio (TTM)
MS
15.56
Capital Markets Industry
- Max
- 58.89
- Q3
- 31.00
- Median
- 18.54
- Q1
- 12.09
- Min
- 5.24
MS’s P/E Ratio of 15.56 is within the middle range for the Capital Markets industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
SAP
42.26
Software Industry
- Max
- 149.35
- Q3
- 100.21
- Median
- 47.97
- Q1
- 26.77
- Min
- 11.68
SAP’s P/E Ratio of 42.26 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)
MS
2.03
Capital Markets Industry
- Max
- 14.49
- Q3
- 7.41
- Median
- 4.68
- Q1
- 2.25
- Min
- 0.04
In the lower quartile for the Capital Markets industry, MS’s P/S Ratio of 2.03 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
SAP
7.70
Software Industry
- Max
- 25.24
- Q3
- 13.52
- Median
- 8.15
- Q1
- 4.87
- Min
- 0.98
SAP’s P/S Ratio of 7.70 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)
MS
2.08
Capital Markets Industry
- Max
- 9.48
- Q3
- 4.94
- Median
- 2.42
- Q1
- 1.21
- Min
- 0.38
MS’s P/B Ratio of 2.08 is within the conventional range for the Capital Markets 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
7.74
Software Industry
- Max
- 30.95
- Q3
- 14.91
- Median
- 7.75
- Q1
- 3.60
- Min
- 0.38
SAP’s P/B Ratio of 7.74 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 | MS | SAP |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 15.56 | 42.26 |
| Price-to-Sales Ratio (TTM) | 2.03 | 7.70 |
| Price-to-Book Ratio (MRQ) | 2.08 | 7.74 |
| Price-to-Free Cash Flow Ratio (TTM) | 10.44 | 37.81 |