Salesforce, Inc. (CRM) vs SAP SE (SAP)

Salesforce, Inc. and SAP SE are both Software Application companies. SAP SE is the larger, with a market value of $242.9B against $194.9B — 1.2× the size. Salesforce, Inc. trades at the lower P/E: 21.3× against 26.4×. SAP SE grew revenue faster over the last twelve months: 14.1% against 11.2%. Salesforce, Inc. has the higher net margin (22.0% vs 20.4%) and the lower return on invested capital (8.24% vs 14.5%). Both pay a dividend; Salesforce, Inc. yields more (6.73% vs 1.28%). Across the 23 metrics below, Salesforce, Inc. leads on 14 and SAP SE on 9.

Valuation

Metric CRM SAP Software Application median
P/E 21.26 26.37 24.79
P/S 4.37 5.45 2.67
P/B 5.00 4.62 3.01
Price to free cash flow 12.66 23.90 16.59
EV/EBITDA 14.98 18.08 14.40
EV/Sales 5.09 5.42 2.62
Earnings yield 4.70% 3.79% 0.00%
Free cash flow yield 7.90% 4.18% 1.91%

Profitability

Metric CRM SAP Software Application median
Gross margin 77.28% 72.77% 67.03%
Operating margin 19.88% 26.74% 0.00%
Net margin 21.99% 20.41% 0.00%
Free cash flow margin 34.49% 22.81% 4.32%
Return on equity 19.38% 18.26% 0.00%
Return on assets 9.33% 10.99% 0.00%
Return on invested capital 8.24% 14.51% 0.00%

Growth

Metric CRM SAP Software Application median
Revenue growth (TTM) 11.23% 14.06% 12.40%
EPS growth (last fiscal year) 22.64% 143.45% —
Revenue growth, 5-year CAGR 14.34% 5.92% 13.72%
Net income growth, 5-year CAGR 12.86% 6.63% 0.00%

Health

Metric CRM SAP Software Application median
Debt to equity 1.02 0.23 0.02
Current ratio 0.84 1.15 1.55
Net debt to EBITDA 0.34 (0.16) 0.06

Dividend

Metric CRM SAP Software Application median
Dividend yield 6.73% 1.28% 1.25%
Payout ratio 0.00 1.39 0.00

Size

Metric CRM SAP Software Application median
Market cap 194.93b 242.91b 396.11m

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