Head to Head Comparison: ExactTarget (ET) vs. SAP (SAP)

ExactTarget (NYSE: ET) and SAP (NYSE:SAP) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ExactTarget 0 0 1 0 3.00
SAP 1 3 12 0 2.69

ExactTarget currently has a consensus target price of $20.25, suggesting a potential upside of Infinity. SAP has a consensus target price of $104.90, suggesting a potential downside of 5.87%. Given ExactTarget’s stronger consensus rating and higher possible upside, equities research analysts clearly believe ExactTarget is more favorable than SAP.

Dividends

SAP pays an annual dividend of $0.98 per share and has a dividend yield of 0.9%. ExactTarget does not pay a dividend. SAP pays out 28.9% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares ExactTarget and SAP’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ExactTarget N/A N/A N/A ($0.91) N/A
SAP $24.42 billion 5.61 $3.85 billion $3.39 32.87

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

Profitability

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

Net Margins Return on Equity Return on Assets
ExactTarget N/A N/A N/A
SAP 15.80% 15.43% 8.93%

Insider and Institutional Ownership

3.7% of SAP shares are held by institutional investors. 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.

Summary

SAP beats ExactTarget on 8 of the 11 factors compared between the two stocks.

ExactTarget Company Profile

ExactTarget, Inc. is a global provider of cross-channel, interactive marketing software-as-a-service (SaaS) solutions. The Company’s solutions provide marketers with a suite of integrated applications. The Company’s suite of cross-channel, interactive marketing applications include e-mail, mobile, social media and sites, is built on its flexible multi-tenant SaaS platform. These channel applications are integrated with its campaign management, calendaring, dashboard, integrated reporting, marketing automation and data management tools. The Company also provides open application programming interfaces (APIs) and developer tools that allow third parties to embed its technology into their solutions and build applications on its platform. The Company generates revenue through the sale of subscriptions to its suite of cross-channel, interactive marketing SaaS solutions and the delivery of professional services. In October 2012, it acquired iGoDigital.

SAP Company Profile

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.

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