SAP (NYSE:SAP – Get Free Report) and eGain (NASDAQ:EGAN – Get Free Report) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Institutional & Insider Ownership
53.9% of eGain shares are owned by institutional investors. 7.3% of SAP shares are owned by insiders. Comparatively, 38.7% of eGain shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for SAP and eGain, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SAP | 0 | 7 | 13 | 1 | 2.71 |
| eGain | 0 | 4 | 0 | 0 | 2.00 |
Earnings and Valuation
This table compares SAP and eGain”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SAP | $41.63 billion | 6.62 | $8.10 billion | $7.96 | 28.16 |
| eGain | $91.14 million | 1.54 | $8.88 million | $0.32 | 17.34 |
SAP has higher revenue and earnings than eGain. eGain is trading at a lower price-to-earnings ratio than SAP, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
SAP has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, eGain has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.
Profitability
This table compares SAP and eGain’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SAP | 20.88% | 17.07% | 10.61% |
| eGain | 9.74% | 11.75% | 7.06% |
Summary
SAP beats eGain on 13 of the 15 factors compared between the two stocks.
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.
About eGain
eGain Corporation develops, licenses, implements, and supports customer service infrastructure software solutions in North America, Europe, the Middle East, Africa, and the Asia Pacific. It provides eGain Knowledge Hub, which helps businesses to centralize knowledge, policies, procedures, situational expertise, best-practices, while delivering guided, and personalized solutions to customers and agents; eGain Conversation Hub for digital-first, omnichannel interaction management within a modern, purpose-built desktop; and eGain Analytics Hub enables clients to measure, manage, and optimize omnichannel service operations and knowledge. The company also offers subscription services that provides customers with access to its software on a cloud-based platform; and professional services, such as consulting and implementation, training, and managed services. It serves customers in various industry sectors, including the financial services, telecommunications, retail, government, healthcare, and utilities. The company was incorporated in 1997 and is headquartered in Sunnyvale, California.
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