Financial Survey: AvePoint (NASDAQ:AVPT) versus SAP (NYSE:SAP)

AvePoint (NASDAQ:AVPT) and SAP (NYSE:SAP) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitability.

Risk & Volatility

AvePoint has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, SAP has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for AvePoint and SAP, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AvePoint	0	6	10	0	2.62
SAP	0	8	13	1	2.68

AvePoint presently has a consensus price target of $16.44, suggesting a potential upside of 20.41%. SAP has a consensus price target of $255.67, suggesting a potential upside of 17.11%. Given AvePoint’s higher probable upside, analysts clearly believe AvePoint is more favorable than SAP.

Profitability

This table compares AvePoint and SAP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AvePoint	15.33%	15.97%	9.62%
SAP	20.88%	17.07%	10.61%

Earnings & Valuation

This table compares AvePoint and SAP”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AvePoint	$419.50 million	6.89	$34.80 million	$0.32	42.67
SAP	$41.63 billion	6.44	$8.10 billion	$7.96	27.43

SAP has higher revenue and earnings than AvePoint. SAP is trading at a lower price-to-earnings ratio than AvePoint, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

44.5% of AvePoint shares are owned by institutional investors. 22.7% of AvePoint shares are owned by insiders. Comparatively, 7.3% of SAP shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

SAP beats AvePoint on 9 of the 15 factors compared between the two stocks.

About AvePoint

AvePoint, Inc. provides cloud-native data management software platform in North America, Europe, Middle East, Africa, and Asia Pacific. It also offers software-as-a-service solutions and productivity applications. The company offers modularity and cloud services architecture to address critical challenges and the management of data to organizations that leverage third-party cloud vendors, including Microsoft, Salesforce, Google, AWS, Box, DropBox, and others; license and support; and maintenance services. AvePoint, Inc. was incorporated in 2001 and is headquartered in Jersey City, New Jersey.

About SAP

SAP SE, together with its subsidiaries, provides applications, technology, and services worldwide. It offers SAP S/4HANA that provides software capabilities for finance, risk and project management, procurement, manufacturing, supply chain and asset management, and research and development; SAP SuccessFactors solutions for human resources, including HR and payroll, talent and employee experience management, and people and workforce analytics; and spend management solutions that covers direct and indirect spend, travel and expense, and external workforce management. The company also provides SAP customer experience solutions; SAP Business Technology platform that enables customers and partners to build, integrate, and automate applications; and SAP Business Network, a business-to-business collaboration platform that helps digitalize key business processes across the supply chain and enables communication between trading partners. In addition, it offers SAP Signavio to help customers to discover, analyze, and understand their business process operations; SAP's industry cloud solutions that provides modular solutions addressing industry-specific functions; Taulia solutions for working capital management to help enable customers mitigate the effects of inflation by providing visibility into working capital and access to liquidity; and sustainability solutions and services. SAP SE was founded in 1972 and is headquartered in Walldorf, Germany.