Data analytics is becoming an important part of modern businesses. Most organizations are realizing the potential of investing in robust big data analytics tools that promise cost savings, increased revenue, and productivity gains. More than 90% of the global businesses are investing in their organization's digital transformation initiatives, and data analytics is playing a huge part in this. This article compares the two data analytics stocks – SAP and Salesforce. Find the best one to make your investment.
SAP is the largest non-American software company by revenue, the world's third-largest publicly-traded software company by revenue, and the most prominent German company by market capitalization. Since 2012, SAP has acquired several companies that sell cloud-based products, with several multibillion-dollar acquisitions seen by analysts as an attempt to challenge competitor Oracle. In 2016 SAP bought Concur Technologies, a provider of cloud-based travel and expense management software, for US$8.3 billion, SAP's most expensive purchase to that date. Its current data analytics stock is US$90.63, 1.47% down from the previous close.
Salesforce provides customer relationship management (CRM) service and enterprise applications focused on customer service, marketing automation, analytics, and application development. Salesforce unites your marketing, sales, commerce, service, and IT teams from anywhere with Customer 360 one integrated CRM platform that powers our entire suite of connected apps. With Customer 360, you can focus your employees on what's important right now: stabilizing your business, reopening, and getting back to delivering exceptional customer experiences. Its current data analytics stock is US$159.65, 1.73% up from the previous close.
Salesforce projects an 18% revenues CAGR to US$50B in 2025, while SAP's growth forecast is more conservative (6% CAGR) to US$36B in 2025. The market growth is estimated at 11%. SAP is much more profitable today and plans to deliver a 32% operating margin in 2025, while CRM's management is excited to announce an 18% operating margin. Experts believe that SAP's forecast is on the conservative side, which pushes down the company's valuation and at the same time presents upside potential to at least US$165/share.
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