WallStSmart

Cerence Inc (CRNC)vsSAP SE ADR (SAP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

SAP SE ADR generates 12240% more annual revenue ($38.19B vs $309.49M). SAP leads profitability with a 20.4% profit margin vs -5.0%. SAP earns a higher WallStSmart Score of 64/100 (C+).

CRNC

Hold

36

out of 100

Grade: F

Growth: 3.3Profit: 3.5Value: 6.7Quality: 4.5
Piotroski: 3/9Altman Z: -1.33

SAP

Buy

64

out of 100

Grade: C+

Growth: 7.3Profit: 8.5Value: 4.0Quality: 8.0
Piotroski: 6/9Altman Z: 3.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CRNCUndervalued (+53.2%)

Margin of Safety

+53.2%

Fair Value

$17.30

Current Price

$8.51

$8.79 discount

UndervaluedFair: $17.30Overvalued
SAPSignificantly Overvalued (-30.1%)

Margin of Safety

-30.1%

Fair Value

$151.01

Current Price

$206.36

$55.35 premium

UndervaluedFair: $151.01Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CRNC1 strengths · Avg: 8.0/10
Price/BookValuation
2.3x8/10

Reasonable price relative to book value

SAP6 strengths · Avg: 9.0/10
Market CapQuality
$248.28B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
3.1110/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
20.4%9/10

Keeps 20 of every $100 in revenue as profit

Debt/EquityHealth
0.229/10

Conservative balance sheet, low leverage

Operating MarginProfitability
27.6%8/10

Strong operational efficiency at 27.6%

EPS GrowthGrowth
30.6%8/10

Earnings expanding 30.6% YoY

Areas to Watch

CRNC4 concerns · Avg: 3.0/10
Market CapQuality
$384.91M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

Debt/EquityHealth
1.123/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

SAP3 concerns · Avg: 3.3/10
PEG RatioValuation
1.644/10

Expensive relative to growth rate

P/E RatioValuation
27.8x4/10

Moderate valuation

Price/BookValuation
64.9x2/10

Trading at 64.9x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : CRNC

The strongest argument for CRNC centers on Price/Book. Revenue growth of 11.8% demonstrates continued momentum.

Bull Case : SAP

The strongest argument for SAP centers on Market Cap, Altman Z-Score, Profit Margin. Profitability is solid with margins at 20.4% and operating margin at 27.6%.

Bear Case : CRNC

The primary concerns for CRNC are Market Cap, Operating Margin, Debt/Equity.

Bear Case : SAP

The primary concerns for SAP are PEG Ratio, P/E Ratio, Price/Book.

Key Dynamics to Monitor

CRNC profiles as a turnaround stock while SAP is a mature play — different risk/reward profiles.

CRNC carries more volatility with a beta of 3.01 — expect wider price swings.

CRNC is growing revenue faster at 11.8% — sustainability is the question.

SAP generates stronger free cash flow (3.0B), providing more financial flexibility.

Bottom Line

SAP scores higher overall (64/100 vs 36/100), backed by strong 20.4% margins. CRNC offers better value entry with a 53.2% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Cerence Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Cerence Inc. provides assistants and innovations with artificial intelligence technology for connected and autonomous vehicles. Offers state-of-the-art software components; components connected to the cloud; tool kits; Applications; and virtual assistant for coexistence and professional services. The company is headquartered in Burlington, Massachusetts.

SAP SE ADR

TECHNOLOGY · SOFTWARE - APPLICATION · USA

SAP SE is a global enterprise application software company. The company is headquartered in Walldorf, Germany.

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