Analyzing SAP (NYSE:SAP) and USData (OTCMKTS:USDC)

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

Risk & Volatility

SAP has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, USData has a beta of -1.5, suggesting that its share price is 250% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SAP	20.08%	17.31%	10.80%
USData	N/A	N/A	N/A

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SAP	0	7	11	2	2.75
USData	0	0	0	0	0.00

SAP currently has a consensus target price of $288.00, indicating a potential upside of 65.44%. Given SAP’s stronger consensus rating and higher possible upside, equities analysts plainly believe SAP is more favorable than USData.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SAP	$41.63 billion	5.14	$8.10 billion	$7.40	23.52
USData	N/A	N/A	N/A	N/A	N/A

SAP has higher revenue and earnings than USData.

Summary

SAP beats USData on 9 of the 9 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 USData

USDATA Corp. operates as an independent, global supplier of industrial automation software tools, applications, and consulting services designed to provide businesses with the knowledge and control needed to perfect the products they produce and the processes they manage. USDATA Corp. develops, markets, and supports component-based software products for customers requiring enterprise-wide, open solutions for the industrial automation markets. These software products provide customers real-time computer applications that enable interactive, dynamic, and graphical interfaces to industrial operations. These applications collect, consolidate, and communicate information about an automated process, typically drawn from complex operating sources or from multiple sites throughout an enterprise; and enable the user to interact with and control critical processes. The real-time information provided by its products is intended to enable customers to reduce operating costs, improve product quality, and increase overall throughput and productivity. USDATA’s FactoryLink is a process knowledge and control solution where as its Xfactory is a product knowledge and control software product. It serves customers in a variety of industries, including chemical, oil and gas, food, beverage, automotive, aerospace, telecommunications, electronics, transportation, and other industries. These customers are located in the United States, Europe, Canada, Latin America, and Asia Pacific. The company sells its products and services to end customers and systems integrators through distributors, original equipment manufacturer relationships, and direct sales. USDATA Corp. was founded in 1974 and is based in Richardson, Texas.