SAP (NYSE:SAP) and Fastly (NYSE:FSLY) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.
Profitability
This table compares SAP and Fastly’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SAP | 12.62% | 16.12% | 8.15% |
| Fastly | N/A | N/A | N/A |
Insider and Institutional Ownership
4.8% of SAP shares are owned by institutional investors. Comparatively, 12.9% of Fastly shares are owned by institutional investors. 7.4% of SAP shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares SAP and Fastly’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SAP | $29.18 billion | 5.53 | $4.82 billion | $4.53 | 29.82 |
| Fastly | N/A | N/A | N/A | N/A | N/A |
SAP has higher revenue and earnings than Fastly.
Analyst Ratings
This is a breakdown of recent ratings and target prices for SAP and Fastly, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SAP | 1 | 6 | 8 | 0 | 2.47 |
| Fastly | 0 | 2 | 10 | 0 | 2.83 |
SAP currently has a consensus price target of $129.00, suggesting a potential downside of 4.50%. Fastly has a consensus price target of $25.49, suggesting a potential upside of 16.97%. Given Fastly’s stronger consensus rating and higher probable upside, analysts plainly believe Fastly is more favorable than SAP.
Summary
SAP beats Fastly on 5 of the 9 factors compared between the two stocks.
SAP Company Profile
SAP SE operates as an enterprise application software, and analytics and business intelligence company worldwide. The company operates through three segments: Applications, Technology & Services; SAP Business Network; and Customer Experience. It offers SAP HANA, which enables businesses to process and analyze live data; SAP Data Hub, a solution for businesses to manage data from various sources; and SAP Cloud platform that offers an enterprise platform-as-a-service. The company also provides SAP Leonardo, a system that combines design thinking services with intelligent technologies for business processes; SAP Analytics Cloud, which leverages the intersection of business intelligence, planning, and predictive analytics; SAP BW/4HANA, a data warehouse solution; SAP S/4HANA, an enterprise resource planning suite for intelligent enterprises; SAP Integrated Business Planning solutions that deliver real-time supply chain planning capabilities; and SAP Business One, an on-premise and cloud business application. In addition, it offers SAP Fiori, an user experience interface; SAP SuccessFactors Human Capital Management solutions that help organizations enhance the value of their workforce; SAP Fieldglass, a cloud-based application for external workforce management and services procurement; SAP Ariba, an online business-to-business marketplace; and SAP Concur, a travel and expense management software. Further, the company provides SAP MaxAttention to turn ideas into value-based predictable outcomes; and SAP ActiveAttention program, a premium-level engagement solution to support smaller businesses. Additionally, it offers SAP Enterprise Support services that provides proactive, predictive, and preventive support for customers across hybrid landscapes; and SAP Preferred Success, which provides a bundle of prescriptive customer success activities for accelerated cloud adoption. SAP SE was founded in 1972 and is headquartered in Walldorf, Germany.
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