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MSFT vs. SAP: Microsoft vs. SAP Stock Comparison

How do Microsoft (MSFT) and SAP (SAP) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Microsoft (MSFT) and SAP (SAP) both belong to the Software industry, though MSFT is classified under Systems Software while SAP falls under Application Software.

Microsoft (MSFT) trades as ordinary local shares, while SAP (SAP) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile comparison for Microsoft (MSFT) and SAP (SAP)
Profile ItemMSFTSAP
NameMicrosoft CorporationSAP SE Sponsored ADR
Country/RegionUnited StatesGermany
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareSoftware
GICS Sub-IndustrySystems SoftwareApplication Software
Market Capitalization3,678.62 billion USD240.04 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateMarch 13, 1986September 18, 1995
Security TypeCommon StockADR

Price Performance

Cumulative Growth

MSFT
SAP
GSPC
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Microsoft (MSFT) vs. SAP (SAP), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Microsoft (MSFT) and SAP (SAP). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Microsoft (MSFT) and SAP (SAP). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Microsoft (MSFT) and SAP (SAP)
MetricMSFTSAP
Total Return (1Y)-4.43%-24.14%
Total Return (3Y, Annualized)16.10%15.87%
Total Return (5Y, Annualized)12.00%8.81%

Risk Profile

Drawdown History

MSFT
SAP
GSPC
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Microsoft (MSFT) vs. SAP (SAP), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Microsoft (MSFT) and SAP (SAP). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Microsoft (MSFT) and SAP (SAP)
MetricMSFTSAP
Volatility (1Y, Annualized)32.14%38.27%
Beta (5Y)1.111.15
Max Drawdown (5Y)-37.15%-52.26%
Avg. Volume (3M)40.35M3.09M

Risk-Adjusted Performance

Risk-Return Positioning

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MSFT and SAP are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Microsoft (MSFT) and SAP (SAP)
MetricMSFTSAP
Sharpe Ratio (1Y)-0.26-0.73
Sortino Ratio (1Y)-0.40-0.99

Profitability

ROE (TTM)

Both Microsoft (MSFT) at 34.04% and SAP (SAP) at 18.32% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

MSFT

Software & Services industry group

34.04%

Max
62.27%
MSFT
34.04%
Q3
16.91%
Median
5.27%
Q1
-13.73%
Min
-54.87%

SAP

Software & Services industry group

18.32%

Max
62.27%
SAP
18.32%
Q3
16.91%
Median
5.27%
Q1
-13.73%
Min
-54.87%
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Microsoft (MSFT) vs. SAP (SAP): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

For every dollar of sales, both Microsoft (MSFT) at 40.31% and SAP (SAP) at 20.41% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

MSFT

Software & Services industry group

40.31%

Max
41.99%
MSFT
40.31%
Q3
15.18%
Median
3.79%
Q1
-5.84%
Min
-30.39%

SAP

Software & Services industry group

20.41%

Max
41.99%
SAP
20.41%
Q3
15.18%
Median
3.79%
Q1
-5.84%
Min
-30.39%
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Microsoft (MSFT) vs. SAP (SAP): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Both Microsoft (MSFT) at 45.11% and SAP (SAP) at 27.62% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

MSFT

Software & Services industry group

45.11%

Max
47.12%
MSFT
45.11%
Q3
15.23%
Median
4.59%
Q1
-6.33%
Min
-32.77%

SAP

Software & Services industry group

27.62%

Max
47.12%
SAP
27.62%
Q3
15.23%
Median
4.59%
Q1
-6.33%
Min
-32.77%
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Microsoft (MSFT) vs. SAP (SAP): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Microsoft (MSFT) and SAP (SAP)
MetricMSFTSAP
ROE (TTM)34.04%18.32%
ROA (TTM)14.09%9.54%
Net Margin (TTM)40.31%20.41%
Operating Margin (TTM)45.11%27.62%
Gross Margin (TTM)67.94%73.66%

Growth

Revenue Growth

Both Microsoft (MSFT) at 17.79% and SAP (SAP) at 7.68% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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Microsoft (MSFT) vs. SAP (SAP): A comparison of their Revenue Growth across different time periods.

EPS Growth

SAP (SAP) at 130.19% sits in the top EPS growth quartile, while Microsoft (MSFT) at 31.60% is closer to the peer norm — faster per-share earnings growth for SAP.

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Microsoft (MSFT) vs. SAP (SAP): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Microsoft (MSFT) and SAP (SAP)
MetricMSFTSAP
Revenue Growth (YoY)17.79%7.68%
Revenue Growth (3Y CAGR)16.12%7.63%
EPS Growth (YoY)31.60%130.19%
EPS Growth (3Y CAGR)22.86%46.25%

Financial Strength

Current Ratio (MRQ)

Both Microsoft (MSFT) at 1.23 and SAP (SAP) at 1.15 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

MSFT

Software & Services industry group

1.23

Max
5.39
Q3
2.79
Median
1.63
MSFT
1.23
Q1
1.03
Min
0.03

SAP

Software & Services industry group

1.15

Max
5.39
Q3
2.79
Median
1.63
SAP
1.15
Q1
1.03
Min
0.03
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Microsoft (MSFT) vs. SAP (SAP): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Both Microsoft (MSFT) at 0.29 and SAP (SAP) at 0.22 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

MSFT

Software & Services industry group

0.29

Max
2.42
Q3
1.07
Median
0.33
MSFT
0.29
Q1
0.06
Min
0.00

SAP

Software & Services industry group

0.22

Max
2.42
Q3
1.07
Median
0.33
SAP
0.22
Q1
0.06
Min
0.00
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Microsoft (MSFT) vs. SAP (SAP): A comparison of their debt-to-equity ratio against the Software & Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Microsoft (MSFT) and SAP (SAP)
MetricMSFTSAP
Current Ratio (MRQ)1.231.15
Debt / Equity (MRQ)0.290.22
Net Debt / EBITDA0.27-0.14

Dividends

Dividend Yield (TTM)

Both Microsoft (MSFT) at 0.73% and SAP (SAP) at 1.19% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

MSFT

Software & Services industry group

0.73%

MSFT
0.73%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

SAP

Software & Services industry group

1.19%

SAP
1.19%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Microsoft (MSFT) vs. SAP (SAP): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Both Microsoft (MSFT) at 19.83% and SAP (SAP) at 37.53% pay out more of their earnings than any of their industry peers — the thinnest cover in their groups, so dividend headroom deserves attention.

MSFT

Software & Services industry group

19.83%

MSFT
19.83%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

SAP

Software & Services industry group

37.53%

SAP
37.53%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Microsoft (MSFT) vs. SAP (SAP): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Microsoft (MSFT) and SAP (SAP)
MetricMSFTSAP
Dividend Yield (TTM)0.73%1.19%
Dividend Payout Ratio (TTM)19.83%37.53%

Valuation

P/E Ratio (TTM)

Both Microsoft (MSFT) at 27.71 and SAP (SAP) at 27.19 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

MSFT

Software & Services industry group

27.71

Max
107.17
Q3
61.33
Median
34.31
MSFT
27.71
Q1
16.59
Min
0.39

SAP

Software & Services industry group

27.19

Max
107.17
Q3
61.33
Median
34.31
SAP
27.19
Q1
16.59
Min
0.39
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Microsoft (MSFT) vs. SAP (SAP): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

SAP (SAP) at 6.29 is priced about in line with its industry on P/S ratio, while Microsoft (MSFT) at 11.09 sits in the pricier quartile — MSFT costs more per dollar of sales.

MSFT

Software & Services industry group

11.09

Max
21.27
MSFT
11.09
Q3
10.17
Median
4.61
Q1
2.41
Min
0.02

SAP

Software & Services industry group

6.29

Max
21.27
Q3
10.17
SAP
6.29
Median
4.61
Q1
2.41
Min
0.02
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Microsoft (MSFT) vs. SAP (SAP): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

Microsoft (MSFT) at 8.32 sits near its industry’s typical P/B ratio, while SAP (SAP) at 65.46 prices above its benchmark range — SAP looks rich relative to book.

MSFT

Software & Services industry group

8.32

Max
21.34
Q3
9.85
MSFT
8.32
Median
4.58
Q1
2.15
Min
-8.85

SAP

Software & Services industry group

65.46

SAP
65.46
Max
21.34
Q3
9.85
Median
4.58
Q1
2.15
Min
-8.85
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Microsoft (MSFT) vs. SAP (SAP): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Microsoft (MSFT) and SAP (SAP)
MetricMSFTSAP
P/E Ratio (TTM)27.7127.19
P/S Ratio (TTM)11.096.29
P/B Ratio (MRQ)8.3265.46
Free Cash Flow Yield (TTM)0.45%3.79%