KWESST Micro Systems (NASDAQ:KWE – Get Free Report) and SAP (NYSE:SAP – Get Free Report) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.
Valuation & Earnings
This table compares KWESST Micro Systems and SAP’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| KWESST Micro Systems | $970,000.00 | 4.37 | -$6.90 million | ($1.28) | -0.40 |
| SAP | $33.77 billion | N/A | $6.64 billion | $4.61 | 40.92 |
SAP has higher revenue and earnings than KWESST Micro Systems. KWESST Micro Systems is trading at a lower price-to-earnings ratio than SAP, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| KWESST Micro Systems | 0 | 0 | 0 | 0 | N/A |
| SAP | 0 | 2 | 6 | 0 | 2.75 |
SAP has a consensus price target of $216.40, suggesting a potential upside of 14.73%. Given SAP’s higher possible upside, analysts clearly believe SAP is more favorable than KWESST Micro Systems.
Profitability
This table compares KWESST Micro Systems and SAP’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| KWESST Micro Systems | -967.70% | -520.61% | -161.42% |
| SAP | 15.76% | 9.79% | 6.05% |
Insider & Institutional Ownership
21.4% of KWESST Micro Systems shares are held by institutional investors. 7.4% of SAP shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Volatility & Risk
KWESST Micro Systems has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, SAP has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.
Summary
SAP beats KWESST Micro Systems on 10 of the 12 factors compared between the two stocks.
About KWESST Micro Systems
KWESST Micro Systems Inc. engages in the development and commercialization of tactical systems and ammunitions for military, public safety agencies, and personal defense markets. It provides non-lethal products, including PARA OPS devices and ARWEN products. The company was incorporated in 2017 and is headquartered in Ottawa, Canada.
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.
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