Microsoft (MSFT) vs. SAP (SAP)

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 a standard ordinary-equity line, while SAP (SAP) is an ADR tied to a foreign-share or depositary-receipt structure — compare with FX exposure, program fees, and dividend-withholding-tax differences in mind.

Valuation

Both Microsoft (MSFT) at 24.83 and SAP (SAP) at 25.52 post Price-to-Earnings Ratio (TTM) near the typical industry midpoint — neither company stands out strongly from peers on trailing earnings multiple.

SAP (SAP) at 5.83 is priced about in line with its industry on Price-to-Sales Ratio (TTM), while Microsoft (MSFT) at 9.73 sits in the pricier quartile — MSFT costs more per dollar of sales.

On Price-to-Book Ratio (MRQ), both Microsoft (MSFT) at 7.47 and SAP (SAP) at 4.12 are valued close to their industries’ norm against book — neither stands out from peers.

Valuation at a Glance

Profitability

Microsoft (MSFT) at 34.01% ranks in the top quartile for Return on Equity (TTM), ahead of SAP (SAP) at 16.35%, which sits closer to the industry mid-range.

For every dollar of sales, both Microsoft (MSFT) at 39.34% and SAP (SAP) at 19.58% retain more as net profit than most peers, landing in the top Net Profit Margin (TTM) quartile of their industries.

Both Microsoft (MSFT) at 46.33% and SAP (SAP) at 30.03% squeeze more operating profit from each sales dollar than most peers, ranking in the top Operating Profit Margin (TTM) quartile of their industries.

Profitability at a Glance

Growth

Revenue Growth

Revenue Growth at a Glance

EPS Growth

EPS Growth at a Glance

Financial Strength

Both Microsoft (MSFT) at 1.28 and SAP (SAP) at 1.07 carry Current Ratio (MRQ) within their industry mid-ranges, suggesting balanced short-term liquidity relative to peers.

Both Microsoft (MSFT) at 0.30 and SAP (SAP) at 0.17 post Debt-to-Equity Ratio (MRQ) near their industry mid-ranges, so neither company stands out strongly from peers on leverage.

Financial Strength at a Glance

Dividends

Both Microsoft (MSFT) at 0.87% and SAP (SAP) at 1.59% report Dividend Yield (TTM) near their industry mid-ranges, so neither company stands out strongly from peers on cash yield relative to share price.

Both Microsoft (MSFT) at 20.73% and SAP (SAP) at 37.15% post Dividend Payout Ratio (TTM) outside their industries’ typical mid-range — either leaning toward more retention or more distribution than the industry median.

Dividends at a Glance

Performance & Risk

Performance & Risk at a Glance