Reviewing PTC (NASDAQ:PTC) & SAP (NYSE:SAP)

PTC (NASDAQ:PTC) and SAP (NYSE:SAP) are both large-cap technology companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, profitability, institutional ownership and valuation.

Insider and Institutional Ownership

95.1% of PTC shares are owned by institutional investors. 0.3% of PTC shares are owned by company insiders. Comparatively, 7.3% of SAP shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares PTC and SAP”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PTC	$2.95 billion	7.14	$734.00 million	$10.34	18.79
SAP	$39.39 billion	7.28	$8.10 billion	$8.19	28.51

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

Risk & Volatility

PTC has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, SAP has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PTC	41.67%	25.31%	14.55%
SAP	20.87%	17.49%	10.77%

Analyst Ratings

This is a summary of recent recommendations and price targets for PTC and SAP, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PTC	0	14	2	0	2.12
SAP	0	7	12	1	2.70

PTC currently has a consensus price target of $200.06, indicating a potential upside of 2.96%. SAP has a consensus price target of $258.83, indicating a potential upside of 10.87%. Given SAP’s stronger consensus rating and higher possible upside, analysts plainly believe SAP is more favorable than PTC.

Summary

SAP beats PTC on 10 of the 15 factors compared between the two stocks.

About PTC

PTC Inc. operates as software company in the Americas, Europe, and the Asia Pacific. The company provides Windchill, a suite that manages all aspects of the product development lifecycle(PLM) that provides real-time information sharing, dynamic data visualization, collaborate across geographically distributed teams, and enabling manufacturers to elevate product development, manufacturing, and field service processes; ThingWorx, a platform for Industrial Internet of Things; ServiceMax, a field service management solutions enable companies to asset uptime with optimized in-person and remote service and technician productivity with mobile tools. and deliver metrics; and Arena, a SaaS PLM solution enables product teams to collaborate virtually to share product and quality information with internal teams and supply chain partners and deliver products to customers. It offers Codebeamer, an application lifecycle management for products and software development; Servigistics, a service parts management solution; and FlexPLM, a solution provides retailers with a single platform for merchandising and line planning, materials management, sampling, and others. In addition, it offers Kepware, a portfolio of industrial connectivity solutions helps companies connect diverse automation devices and software applications; Creo, a 3D CAD technology enables the digital design, testing, and modification of product models; and Onshape, a cloud product development platform that delivers computer-aided design with data management tools. Further, it offers Vuforia, an augmented reality (AR) technology enables the visualization of digital information in a physical context and the creation of AR enabling companies to drive results in manufacturing, service, engineering, and operations; and Arbortext, a dynamic publishing solution streamlines how organizations create, manage, and publish technical documentation. PTC Inc. was incorporated in 1985 and is headquartered in Boston, Massachusetts.

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.