SAP SE (SAP) vs Snowflake Inc. (SNOW)

SAP SE and Snowflake Inc. are both Software Application companies. SAP SE is the larger, with a market value of $274.9B against $95.1B — 2.9× the size. Snowflake Inc. has negative trailing earnings, so its P/E is not meaningful; SAP SE trades at 29.5×. Snowflake Inc. grew revenue faster over the last twelve months: 32.0% against 13.4%. SAP SE has the higher net margin (20.4% vs −20.1%) and the higher return on invested capital (14.6% vs −37.0%). Across the 20 metrics below, SAP SE leads on 18 and Snowflake Inc. on 2.

Valuation

Metric SAP SNOW Software Application median
P/E 29.53 n/m 25.90
P/S 6.12 17.41 3.04
P/B 5.24 44.01 2.60
Price to free cash flow 27.00 79.35 17.17
EV/EBITDA 20.26 n/m 15.48
EV/Sales 6.11 17.40 2.89
Earnings yield 3.39% (1.17%) 0.00%
Free cash flow yield 3.70% 1.26% 1.98%

Profitability

Metric SAP SNOW Software Application median
Gross margin 72.69% 67.03% 66.89%
Operating margin 27.04% (22.76%) 0.00%
Net margin 20.41% (20.07%) 0.00%
Free cash flow margin 22.67% 21.94% 5.77%
Return on equity 17.96% (48.17%) 0.00%
Return on assets 11.13% (12.92%) 0.00%
Return on invested capital 14.60% (37.00%) 0.00%

Growth

Metric SAP SNOW Software Application median
Revenue growth (TTM) 13.40% 32.04% 12.27%
EPS growth (last fiscal year) 143.45% (2.33%) 32.11%
Revenue growth, 5-year CAGR 5.92% 51.23% 14.34%
Net income growth, 5-year CAGR 6.63% 0.00% 0.00%

Health

Metric SAP SNOW Software Application median
Debt to equity 0.23 1.06 0.02
Current ratio 1.16 0.94 1.53
Net debt to EBITDA (0.16) 1.61 0.09

Dividend

Metric SAP SNOW Software Application median
Dividend yield 1.20% — 1.10%
Payout ratio 0.36 — 0.28

Size

Metric SAP SNOW Software Application median
Market cap 274.94b 95.09b 487.58m

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