Cerence Inc (CRNC)vsSAP SE ADR (SAP)
CRNC
Cerence Inc
$6.66
-5.13%
TECHNOLOGY · Cap: $307.92M
SAP
SAP SE ADR
$168.95
-1.20%
TECHNOLOGY · Cap: $217.55B
Smart Verdict
WallStSmart Research — data-driven comparison
SAP SE ADR generates 11547% more annual revenue ($36.80B vs $315.96M). SAP leads profitability with a 19.5% profit margin vs 0.1%. SAP trades at a lower P/E of 26.3x. SAP earns a higher WallStSmart Score of 58/100 (C).
CRNC
Buy54
out of 100
Grade: C-
SAP
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-5685.7%
Fair Value
$0.14
Current Price
$6.66
$6.52 premium
Margin of Safety
-88.8%
Fair Value
$104.04
Current Price
$168.95
$64.91 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 32.2%
Revenue surging 126.1% year-over-year
Reasonable price relative to book value
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Growing faster than its price suggests
Strong operational efficiency at 29.2%
Generating 1.1B in free cash flow
Areas to Watch
Smaller company, higher risk/reward
ROE of 0.3% — below average capital efficiency
0.1% margin — thin
Premium valuation, high expectations priced in
Moderate valuation
3.3% revenue growth
Comparative Analysis Report
WallStSmart ResearchBull Case : CRNC
The strongest argument for CRNC centers on Operating Margin, Revenue Growth, Price/Book. Revenue growth of 126.1% demonstrates continued momentum.
Bull Case : SAP
The strongest argument for SAP centers on Market Cap, Altman Z-Score, Debt/Equity. Profitability is solid with margins at 19.5% and operating margin at 29.2%. PEG of 0.79 suggests the stock is reasonably priced for its growth.
Bear Case : CRNC
The primary concerns for CRNC are Market Cap, Return on Equity, Profit Margin. A P/E of 342.0x leaves little room for execution misses. Thin 0.1% margins leave little buffer for downturns.
Bear Case : SAP
The primary concerns for SAP are P/E Ratio, Revenue Growth.
Key Dynamics to Monitor
CRNC profiles as a hypergrowth stock while SAP is a value play — different risk/reward profiles.
CRNC carries more volatility with a beta of 2.71 — expect wider price swings.
CRNC is growing revenue faster at 126.1% — sustainability is the question.
SAP generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
SAP scores higher overall (58/100 vs 54/100), backed by strong 19.5% margins. Both earn "Buy" and "Buy" 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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