SAP (NYSE:SAP) vs. OptimizeRx (NASDAQ:OPRX) Critical Contrast

SAP (NYSE:SAP) and OptimizeRx (NASDAQ:OPRX) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings for SAP and OptimizeRx, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SAP	0	1	15	1	3.00
OptimizeRx	1	4	8	0	2.54

SAP presently has a consensus target price of $284.33, indicating a potential upside of 9.61%. OptimizeRx has a consensus target price of $13.39, indicating a potential downside of 31.72%. Given SAP’s stronger consensus rating and higher possible upside, research analysts plainly believe SAP is more favorable than OptimizeRx.

Volatility and Risk

SAP has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, OptimizeRx has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.

Insider & Institutional Ownership

76.5% of OptimizeRx shares are held by institutional investors. 7.4% of SAP shares are held by company insiders. Comparatively, 5.6% of OptimizeRx shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SAP	19.50%	15.69%	9.67%
OptimizeRx	-9.42%	4.50%	3.12%

Earnings & Valuation

This table compares SAP and OptimizeRx”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SAP	$36.99 billion	8.62	$3.38 billion	$6.68	38.83
OptimizeRx	$92.13 million	3.95	-$18.66 million	($0.54)	-36.31

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

Summary

SAP beats OptimizeRx on 14 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 OptimizeRx

OptimizeRx Corporation, a digital health technology company, enables care-focused engagement between life sciences organizations, healthcare providers, and patients at critical junctures throughout the patient care journey. It offers various tech-enabled marketing solutions through its Artificial Intelligence-generated Dynamic Audience and Activation Platform, which enables customers to execute traditional marketing campaigns on its proprietary digital point-of-care network, as well as dynamic marketing campaigns that optimize audiences in real time to increase the value of treatment information for healthcare professionals and patients in response to clinical care events. The company was founded in 2006 and is based in Waltham, Massachusetts.