Seek Returns logo

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

Updated on

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

Company Profile

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

SymbolSAPSOUN
Company NameSAP SESoundHound AI, Inc.
CountryGermanyUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustrySoftwareSoftware
Market Capitalization293.20 billion USD6.04 billion USD
ExchangeNYSENasdaqGM
Listing DateSeptember 18, 1995April 28, 2022
Security TypeADRCommon Stock

Historical Performance

This chart compares the performance of SAP and SOUN 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.

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

Historical Performance at a Glance

SymbolSAPSOUN
5-Day Price Return-4.34%-4.76%
13-Week Price Return-6.79%-9.37%
26-Week Price Return-17.57%57.14%
52-Week Price Return-1.88%107.34%
Month-to-Date Return-3.65%-18.22%
Year-to-Date Return-8.49%-27.37%
10-Day Avg. Volume1.26M36.47M
3-Month Avg. Volume1.41M56.22M
3-Month Volatility31.33%84.54%
Beta1.012.83

Profitability

Return on Equity (TTM)

SAP

16.19%

Software Industry

Max
66.28%
Q3
21.28%
Median
9.33%
Q1
-8.77%
Min
-48.16%

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.

SOUN

-72.90%

Software Industry

Max
66.28%
Q3
21.28%
Median
9.33%
Q1
-8.77%
Min
-48.16%

SOUN has a negative Return on Equity of -72.90%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

SAP vs. SOUN: A comparison of their Return on Equity (TTM) against the Software industry benchmark.

Net Profit Margin (TTM)

SAP

19.41%

Software Industry

Max
51.92%
Q3
19.23%
Median
6.98%
Q1
-7.14%
Min
-41.00%

A Net Profit Margin of 19.41% places SAP in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.

SOUN

-171.28%

Software Industry

Max
51.92%
Q3
19.23%
Median
6.98%
Q1
-7.14%
Min
-41.00%

SOUN has a negative Net Profit Margin of -171.28%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

SAP vs. SOUN: A comparison of their Net Profit Margin (TTM) against the Software industry benchmark.

Operating Profit Margin (TTM)

SAP

25.46%

Software Industry

Max
60.40%
Q3
21.25%
Median
9.90%
Q1
-4.97%
Min
-43.50%

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.

SOUN

-183.22%

Software Industry

Max
60.40%
Q3
21.25%
Median
9.90%
Q1
-4.97%
Min
-43.50%

SOUN has a negative Operating Profit Margin of -183.22%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

SAP vs. SOUN: A comparison of their Operating Profit Margin (TTM) against the Software industry benchmark.

Profitability at a Glance

SymbolSAPSOUN
Return on Equity (TTM)16.19%-72.90%
Return on Assets (TTM)9.89%-40.55%
Net Profit Margin (TTM)19.41%-171.28%
Operating Profit Margin (TTM)25.46%-183.22%
Gross Profit Margin (TTM)73.83%40.52%

Financial Strength

Current Ratio (MRQ)

SAP

1.11

Software Industry

Max
4.29
Q3
2.37
Median
1.40
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.

SOUN

4.84

Software Industry

Max
4.29
Q3
2.37
Median
1.40
Q1
1.03
Min
0.25

SOUN’s Current Ratio of 4.84 is exceptionally high, placing it well outside the typical range for the Software industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

SAP vs. SOUN: A comparison of their Current Ratio (MRQ) against the Software industry benchmark.

Debt-to-Equity Ratio (MRQ)

SAP

0.21

Software Industry

Max
2.16
Q3
0.86
Median
0.31
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.

SOUN

0.00

Software Industry

Max
2.16
Q3
0.86
Median
0.31
Q1
0.00
Min
0.00

SOUN’s Debt-to-Equity Ratio of 0.00 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.

SAP vs. SOUN: A comparison of their Debt-to-Equity Ratio (MRQ) against the Software industry benchmark.

Interest Coverage Ratio (TTM)

SAP

32.64

Software Industry

Max
89.65
Q3
32.64
Median
1.00
Q1
-9.84
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.

SOUN

-93.77

Software Industry

Max
89.65
Q3
32.64
Median
1.00
Q1
-9.84
Min
-71.23

SOUN has a negative Interest Coverage Ratio of -93.77. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

SAP vs. SOUN: A comparison of their Interest Coverage Ratio (TTM) against the Software industry benchmark.

Financial Strength at a Glance

SymbolSAPSOUN
Current Ratio (MRQ)1.114.84
Quick Ratio (MRQ)1.114.84
Debt-to-Equity Ratio (MRQ)0.210.00
Interest Coverage Ratio (TTM)32.64-93.77

Growth

Revenue Growth

SAP vs. SOUN: 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

SAP vs. SOUN: 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)

SAP

1.09%

Software Industry

Max
0.22%
Q3
0.11%
Median
0.00%
Q1
0.00%
Min
0.00%

SAP’s Dividend Yield of 1.09% 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.

SOUN

0.00%

Software Industry

Max
0.22%
Q3
0.11%
Median
0.00%
Q1
0.00%
Min
0.00%

SOUN currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

SAP vs. SOUN: A comparison of their Dividend Yield (TTM) against the Software industry benchmark.

Dividend Payout Ratio (TTM)

SAP

161.64%

Software Industry

Max
3.29%
Q3
2.41%
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.

SOUN

0.00%

Software Industry

Max
3.29%
Q3
2.41%
Median
0.00%
Q1
0.00%
Min
0.00%

SOUN has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

SAP vs. SOUN: A comparison of their Dividend Payout Ratio (TTM) against the Software industry benchmark.

Dividend at a Glance

SymbolSAPSOUN
Dividend Yield (TTM)1.09%0.00%
Dividend Payout Ratio (TTM)161.64%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

SAP

35.54

Software Industry

Max
145.74
Q3
94.88
Median
45.35
Q1
26.66
Min
8.80

SAP’s P/E Ratio of 35.54 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.

SOUN

--

Software Industry

Max
145.74
Q3
94.88
Median
45.35
Q1
26.66
Min
8.80

P/E Ratio data for SOUN is currently unavailable.

SAP vs. SOUN: A comparison of their Price-to-Earnings Ratio (TTM) against the Software industry benchmark.

Price-to-Sales Ratio (TTM)

SAP

6.90

Software Industry

Max
25.67
Q3
13.68
Median
8.28
Q1
4.95
Min
0.90

SAP’s P/S Ratio of 6.90 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.

SOUN

44.69

Software Industry

Max
25.67
Q3
13.68
Median
8.28
Q1
4.95
Min
0.90

With a P/S Ratio of 44.69, SOUN trades at a valuation that eclipses even the highest in the Software industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

SAP vs. SOUN: A comparison of their Price-to-Sales Ratio (TTM) against the Software industry benchmark.

Price-to-Book Ratio (MRQ)

SAP

6.54

Software Industry

Max
30.67
Q3
14.92
Median
8.52
Q1
3.89
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.

SOUN

11.98

Software Industry

Max
30.67
Q3
14.92
Median
8.52
Q1
3.89
Min
0.38

SOUN’s P/B Ratio of 11.98 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.

SAP vs. SOUN: A comparison of their Price-to-Book Ratio (MRQ) against the Software industry benchmark.

Valuation at a Glance

SymbolSAPSOUN
Price-to-Earnings Ratio (TTM)35.54--
Price-to-Sales Ratio (TTM)6.9044.69
Price-to-Book Ratio (MRQ)6.5411.98
Price-to-Free Cash Flow Ratio (TTM)34.47--