Why SAP Is Poised to Outperform

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, business software specialist has earned a respected four-star ranking.

With that in mind, let's take a closer look at SAP and see what CAPS investors are saying about the stock right now.

SAP facts

Headquarters (founded)

Walldorf, Germany (1972)

Market Cap

$91.5 billion

Industry

Application software

Trailing-12-Month Revenue

$21.3 billion

Management

Co-CEO William McDermott

Co-CEO Jim Snabe

Return on Equity (average, past 3 years)

23.3%

Cash/Debt

$6.0 billion / $6.5 billion

Dividend Yield

1%

Competitors


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 88% of the 397 members who have rated SAP believe the stock will outperform the S&P 500 going forward.

Earlier today, one of those Fools, JohnStuartMill, succinctly summed up the SAP bull case for our community:

Very high profit margin company generating lots of cash. Always redefining itself as the market changes. Now it's cloud computing where the market is still in its infancy and growing fantastically.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, SAP may not be your top choice.

In fact, it's incredible to think just how much of our technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

The article Why SAP Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool owns shares of International Business Machines, Microsoft, and Oracle. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement