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PM vs. SAP: A Head-to-Head Stock Comparison

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Here’s a clear look at PM and SAP, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

PM is a standard domestic listing, while SAP trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

SymbolPMSAP
Company NamePhilip Morris International Inc.SAP SE
CountryUnited StatesGermany
GICS SectorConsumer StaplesInformation Technology
GICS IndustryTobaccoSoftware
Market Capitalization269.06 billion USD320.61 billion USD
ExchangeNYSENYSE
Listing DateMarch 17, 2008September 18, 1995
Security TypeCommon StockADR

Historical Performance

This chart compares the performance of PM 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.

PM vs. SAP: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolPMSAP
5-Day Price Return4.59%-0.88%
13-Week Price Return-0.18%-10.87%
26-Week Price Return15.87%-14.46%
52-Week Price Return45.93%20.56%
Month-to-Date Return5.36%-5.54%
Year-to-Date Return43.62%0.25%
10-Day Avg. Volume4.34M1.46M
3-Month Avg. Volume5.80M1.57M
3-Month Volatility25.38%25.86%
Beta0.500.98

Profitability

Return on Equity (TTM)

PM

575.44%

Tobacco Industry

Max
49.48%
Q3
49.48%
Median
7.92%
Q1
5.28%
Min
4.04%

PM’s Return on Equity of 575.44% is exceptionally high, placing it well beyond the typical range for the Tobacco industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

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.

PM vs. SAP: A comparison of their Return on Equity (TTM) against their respective Tobacco and Software industry benchmarks.

Net Profit Margin (TTM)

PM

21.08%

Tobacco Industry

Max
21.36%
Q3
18.49%
Median
11.05%
Q1
6.80%
Min
5.37%

A Net Profit Margin of 21.08% places PM in the upper quartile for the Tobacco industry, signifying strong profitability and more effective cost management than most of its peers.

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.

PM vs. SAP: A comparison of their Net Profit Margin (TTM) against their respective Tobacco and Software industry benchmarks.

Operating Profit Margin (TTM)

PM

36.28%

Tobacco Industry

Max
14.35%
Q3
12.68%
Median
11.00%
Q1
10.58%
Min
10.58%

PM’s Operating Profit Margin of 36.28% is exceptionally high, placing it well above the typical range for the Tobacco industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

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.

PM vs. SAP: A comparison of their Operating Profit Margin (TTM) against their respective Tobacco and Software industry benchmarks.

Profitability at a Glance

SymbolPMSAP
Return on Equity (TTM)575.44%15.09%
Return on Assets (TTM)12.56%9.09%
Net Profit Margin (TTM)21.08%18.23%
Operating Profit Margin (TTM)36.28%25.13%
Gross Profit Margin (TTM)66.46%73.80%

Financial Strength

Current Ratio (MRQ)

PM

0.83

Tobacco Industry

Max
3.20
Q3
1.83
Median
0.83
Q1
0.72
Min
0.57

PM’s Current Ratio of 0.83 aligns with the median group of the Tobacco industry, indicating that its short-term liquidity is in line with its sector peers.

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.

PM vs. SAP: A comparison of their Current Ratio (MRQ) against their respective Tobacco and Software industry benchmarks.

Debt-to-Equity Ratio (MRQ)

PM

186.08

Tobacco Industry

Max
2.19
Q3
2.19
Median
0.74
Q1
0.26
Min
0.01

With a Debt-to-Equity Ratio of 186.08, PM operates with exceptionally high leverage compared to the Tobacco industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

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.

PM vs. SAP: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Tobacco and Software industry benchmarks.

Interest Coverage Ratio (TTM)

PM

11.67

Tobacco Industry

Max
36.48
Q3
28.54
Median
7.02
Q1
6.32
Min
-11.45

PM’s Interest Coverage Ratio of 11.67 is positioned comfortably within the norm for the Tobacco industry, indicating a standard and healthy capacity to cover its interest payments.

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.

PM vs. SAP: A comparison of their Interest Coverage Ratio (TTM) against their respective Tobacco and Software industry benchmarks.

Financial Strength at a Glance

SymbolPMSAP
Current Ratio (MRQ)0.831.03
Quick Ratio (MRQ)0.831.03
Debt-to-Equity Ratio (MRQ)186.080.21
Interest Coverage Ratio (TTM)11.6732.64

Growth

Revenue Growth

PM vs. SAP: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

PM vs. SAP: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

PM

3.10%

Tobacco Industry

Max
6.71%
Q3
6.06%
Median
5.48%
Q1
3.91%
Min
3.27%

PM’s Dividend Yield of 3.10% is below the typical range for the Tobacco industry. This indicates that shareholder returns are likely driven more by potential capital appreciation than by dividend income.

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.

PM vs. SAP: A comparison of their Dividend Yield (TTM) against their respective Tobacco and Software industry benchmarks.

Dividend Payout Ratio (TTM)

PM

70.92%

Tobacco Industry

Max
77.64%
Q3
76.55%
Median
50.14%
Q1
47.08%
Min
42.39%

PM’s Dividend Payout Ratio of 70.92% is within the typical range for the Tobacco 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.

PM vs. SAP: A comparison of their Dividend Payout Ratio (TTM) against their respective Tobacco and Software industry benchmarks.

Dividend at a Glance

SymbolPMSAP
Dividend Yield (TTM)3.10%0.99%
Dividend Payout Ratio (TTM)70.92%161.64%

Valuation

Price-to-Earnings Ratio (TTM)

PM

32.70

Tobacco Industry

Max
42.16
Q3
36.45
Median
20.93
Q1
10.52
Min
9.15

PM’s P/E Ratio of 32.70 is within the middle range for the Tobacco 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.

PM vs. SAP: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Tobacco and Software industry benchmarks.

Price-to-Sales Ratio (TTM)

PM

6.89

Tobacco Industry

Max
10.48
Q3
5.39
Median
3.32
Q1
1.54
Min
0.59

PM’s P/S Ratio of 6.89 is in the upper echelon for the Tobacco industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

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.

PM vs. SAP: A comparison of their Price-to-Sales Ratio (TTM) against their respective Tobacco and Software industry benchmarks.

Price-to-Book Ratio (MRQ)

PM

1,368.86

Tobacco Industry

Max
4.76
Q3
4.76
Median
2.18
Q1
1.70
Min
1.06

At 1,368.86, PM’s P/B Ratio is at an extreme premium to the Tobacco industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

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.

PM vs. SAP: A comparison of their Price-to-Book Ratio (MRQ) against their respective Tobacco and Software industry benchmarks.

Valuation at a Glance

SymbolPMSAP
Price-to-Earnings Ratio (TTM)32.7042.26
Price-to-Sales Ratio (TTM)6.897.70
Price-to-Book Ratio (MRQ)1,368.867.74
Price-to-Free Cash Flow Ratio (TTM)27.6337.81