Critical Comparison: TeraWulf (NASDAQ:WULF) & SAP (NYSE:SAP)

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

Risk & Volatility

SAP has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, TeraWulf has a beta of 3.7, meaning that its stock price is 270% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for SAP and TeraWulf, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SAP	0	8	13	1	2.68
TeraWulf	1	2	16	4	3.00

SAP presently has a consensus price target of $255.67, suggesting a potential upside of 19.41%. TeraWulf has a consensus price target of $33.99, suggesting a potential upside of 106.36%. Given TeraWulf’s stronger consensus rating and higher possible upside, analysts plainly believe TeraWulf is more favorable than SAP.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SAP	$38.19 billion	6.89	$8.10 billion	$7.96	26.90
TeraWulf	$168.46 million	48.78	-$661.42 million	($4.37)	-3.77

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

Institutional & Insider Ownership

62.5% of TeraWulf shares are held by institutional investors. 7.3% of SAP shares are held by insiders. Comparatively, 15.9% of TeraWulf shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SAP	20.88%	17.07%	10.61%
TeraWulf	-1,179.94%	-458.62%	-8.54%

Summary

TeraWulf beats SAP on 8 of the 15 factors compared between the two stocks.

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.

About TeraWulf

TeraWulf Inc., together with its subsidiaries, operates as a digital asset technology company in the United States. The company develops, owns, and operates bitcoin mining facilities in New York and Pennsylvania. It is also involved in the provision of miner hosting services to third-party entities. The company was founded in 2021 and is headquartered in Easton, Maryland.