WallStSmart

Cerence Inc (CRNC)vsSAP SE ADR (SAP)

VS

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

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 6.0Value: 3.0Quality: 5.0

SAP

Buy

58

out of 100

Grade: C

Growth: 5.3Profit: 8.5Value: 7.3Quality: 8.0
Piotroski: 6/9Altman Z: 3.09
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CRNCSignificantly Overvalued (-5685.7%)

Margin of Safety

-5685.7%

Fair Value

$0.14

Current Price

$6.66

$6.52 premium

UndervaluedFair: $0.14Overvalued
SAPSignificantly Overvalued (-88.8%)

Margin of Safety

-88.8%

Fair Value

$104.04

Current Price

$168.95

$64.91 premium

UndervaluedFair: $104.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CRNC3 strengths · Avg: 9.3/10
Operating MarginProfitability
32.2%10/10

Strong operational efficiency at 32.2%

Revenue GrowthGrowth
126.1%10/10

Revenue surging 126.1% year-over-year

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

SAP6 strengths · Avg: 8.8/10
Market CapQuality
$217.55B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
3.0910/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.798/10

Growing faster than its price suggests

Operating MarginProfitability
29.2%8/10

Strong operational efficiency at 29.2%

Free Cash FlowQuality
$1.09B8/10

Generating 1.1B in free cash flow

Areas to Watch

CRNC4 concerns · Avg: 2.8/10
Market CapQuality
$307.92M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.3%3/10

ROE of 0.3% — below average capital efficiency

Profit MarginProfitability
0.1%3/10

0.1% margin — thin

P/E RatioValuation
342.0x2/10

Premium valuation, high expectations priced in

SAP2 concerns · Avg: 4.0/10
P/E RatioValuation
26.3x4/10

Moderate valuation

Revenue GrowthGrowth
3.3%4/10

3.3% revenue growth

Comparative Analysis Report

WallStSmart Research

Bull 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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