Financial Contrast: SAP SE (SAP) and Instructure (INST)

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

Institutional and Insider Ownership

3.6% of SAP SE shares are owned by institutional investors. Comparatively, 78.3% of Instructure shares are owned by institutional investors. 7.4% of SAP SE shares are owned by insiders. Comparatively, 62.5% of Instructure shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
SAP SE 14.81% 14.28% 8.20%
Instructure -38.12% -827.22% -45.34%

Earnings & Valuation

This table compares SAP SE and Instructure’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SAP SE $27.71 billion 4.75 $6.91 billion $3.11 35.34
Instructure $133.71 million 7.39 -$47.35 million ($1.79) -18.77

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

Analyst Ratings

This is a summary of current ratings for SAP SE and Instructure, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SAP SE 1 4 13 0 2.67
Instructure 0 0 6 1 3.14

SAP SE currently has a consensus price target of $95.40, indicating a potential downside of 13.19%. Instructure has a consensus price target of $36.14, indicating a potential upside of 7.57%. Given Instructure’s stronger consensus rating and higher probable upside, analysts plainly believe Instructure is more favorable than SAP SE.

Risk and Volatility

SAP SE has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, Instructure has a beta of 1.83, suggesting that its share price is 83% more volatile than the S&P 500.

Dividends

SAP SE pays an annual dividend of $0.98 per share and has a dividend yield of 0.9%. Instructure does not pay a dividend. SAP SE pays out 31.5% of its earnings in the form of a dividend.

About SAP SE

SAP SE (SAP) is a software and service provider. The Company offers enterprise application software. The Company operates through two segments: Applications, Technology & Services segment, and the SAP Business Network segment. The Applications, Technology & Services segment is engaged in the sale of software licenses, subscriptions to its cloud applications, and related services (primarily support services and various professional services, and support services, as well as implementation services of its software products and education services on the use of its products). The SAP Business Network segment includes its cloud-based collaborative business networks and services relating to the SAP Business Network (including cloud applications, professional services and education services). Within the SAP Business Network segment, the Company markets and sells the cloud offerings developed by SAP Ariba, SAP Fieldglass and Concur.

About Instructure

Instructure, Inc. provides cloud-based learning management platform for academic institutions and companies across the world. The Company operates in the cloud-based learning management systems segment. The Company builds its learning management applications, Canvas for the education market and Bridge for the corporate market, to enable its customers to develop, deliver and manage face-to-face and online learning experiences. The Company develops software that students, teachers and employees use to help achieve their education and learning goals. Its applications develop academic and corporate learning by providing a platform for instructors and learners, enabling frequent and open interactions, streamlining workflow, and allowing the creation and sharing of content. The Company’s platform runs on a cloud-based architecture that enables users to teach, learn and engage across a range of application environments, operating systems, devices and locations.

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