Head-To-Head Review: SAP (NYSE:SAP) & Xperi (NYSE:XPER)

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

Risk & Volatility

Xperi has a beta of 1.39, suggesting that its share price is 39% 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.

Valuation & Earnings

This table compares Xperi and SAP”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xperi	$448.11 million	0.64	-$56.34 million	($0.70)	-8.39
SAP	$38.19 billion	6.64	$8.10 billion	$7.96	25.93

SAP has higher revenue and earnings than Xperi. Xperi 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

94.3% of Xperi shares are held by institutional investors. 3.2% of Xperi shares are held by company insiders. Comparatively, 7.3% of SAP shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings for Xperi and SAP, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xperi	1	1	2	0	2.25
SAP	0	8	13	1	2.68

Xperi presently has a consensus price target of $11.00, indicating a potential upside of 87.27%. SAP has a consensus price target of $255.67, indicating a potential upside of 23.88%. Given Xperi’s higher possible upside, equities analysts clearly believe Xperi is more favorable than SAP.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Xperi	-7.12%	4.04%	2.72%
SAP	20.88%	17.07%	10.61%

Summary

SAP beats Xperi on 12 of the 15 factors compared between the two stocks.

About Xperi

Xperi Holding Corporation, together with its subsidiaries, operates as a consumer and entertainment product/solutions licensing company worldwide. It operates through two segments, Product, and Intellectual Property Licensing. The company invents, develops, and delivers various technologies. It licenses audio, digital radio, imaging, edge-based machine learning, and multi-channel video user experience solutions to consumer electronics customers, automotive manufacturers, or supply chain partners. The company also provides licensing to multichannel video programming distributors, OTT video service providers, consumer electronics manufacturers, social media, and other new media companies in media industry; and memory, sensors, RF component, and foundry companies in semiconductor industry. It provides its technologies under the DTS, HD Radio, IMAX Enhanced, Invensas, TiVo, and Perceive brands. The company is headquartered in San Jose, California.

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.