SAP SE (SAP) vs Shopify Inc. (SHOP)

SAP SE and Shopify Inc. are both Software Application companies. SAP SE is the larger, with a market value of $242.9B against $187.0B — 1.3× the size. SAP SE trades at the lower P/E: 26.4× against 96.1×. Shopify Inc. grew revenue faster over the last twelve months: 32.5% against 14.1%. SAP SE has the higher net margin (20.4% vs 14.5%) and the lower return on invested capital (14.5% vs 14.6%). Across the 22 metrics below, SAP SE leads on 14 and Shopify Inc. on 8.

Valuation

Metric SAP SHOP Software Application median
P/E 26.37 96.11 24.79
P/S 5.45 13.89 2.67
P/B 4.62 14.53 3.01
Price to free cash flow 23.90 78.34 16.59
EV/EBITDA 18.08 96.31 14.40
EV/Sales 5.42 13.59 2.62
Earnings yield 3.79% 1.04% 0.00%
Free cash flow yield 4.18% 1.28% 1.91%

Profitability

Metric SAP SHOP Software Application median
Gross margin 72.77% 47.77% 67.03%
Operating margin 26.74% 13.90% 0.00%
Net margin 20.41% 14.53% 0.00%
Free cash flow margin 22.81% 17.73% 4.32%
Return on equity 18.26% 15.54% 0.00%
Return on assets 10.99% 13.28% 0.00%
Return on invested capital 14.51% 14.58% 0.00%

Growth

Metric SAP SHOP Software Application median
Revenue growth (TTM) 14.06% 32.50% 12.40%
EPS growth (last fiscal year) 143.45% (39.35%) —
Revenue growth, 5-year CAGR 5.92% 31.58% 13.72%
Net income growth, 5-year CAGR 6.63% 30.96% 0.00%

Health

Metric SAP SHOP Software Application median
Debt to equity 0.23 0.01 0.02
Current ratio 1.15 5.35 1.55
Net debt to EBITDA (0.16) (3.85) 0.06

Dividend

Metric SAP SHOP Software Application median
Dividend yield 1.28% — 1.25%
Payout ratio 1.39 0.00 0.00

Size

Metric SAP SHOP Software Application median
Market cap 242.91b 187.01b 396.11m

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