WallStSmart

CSG Systems International Inc (CSGS)vsSAP SE ADR (SAP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

SAP SE ADR generates 2917% more annual revenue ($37.34B vs $1.24B). SAP leads profitability with a 19.6% profit margin vs 5.1%. SAP appears more attractively valued with a PEG of 0.74. SAP earns a higher WallStSmart Score of 62/100 (C+).

CSGS

Buy

60

out of 100

Grade: C+

Growth: 6.0Profit: 6.0Value: 4.0Quality: 4.5
Piotroski: 2/9Altman Z: 2.35

SAP

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 8.5Value: 5.3Quality: 7.5
Piotroski: 5/9Altman Z: 3.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CSGSFair Value (-1.5%)

Margin of Safety

-1.5%

Fair Value

$78.38

Current Price

$80.35

$1.97 premium

UndervaluedFair: $78.38Overvalued
SAPSignificantly Overvalued (-16.9%)

Margin of Safety

-16.9%

Fair Value

$168.02

Current Price

$170.10

$2.08 premium

UndervaluedFair: $168.02Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CSGS2 strengths · Avg: 8.5/10
Return on EquityProfitability
22.1%9/10

Every $100 of equity generates 22 in profit

EPS GrowthGrowth
45.6%8/10

Earnings expanding 45.6% YoY

SAP6 strengths · Avg: 9.2/10
Market CapQuality
$204.78B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
30.0%10/10

Strong operational efficiency at 30.0%

Altman Z-ScoreHealth
3.1110/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.748/10

Growing faster than its price suggests

Free Cash FlowQuality
$3.27B8/10

Generating 3.3B in free cash flow

Areas to Watch

CSGS4 concerns · Avg: 3.8/10
PEG RatioValuation
1.564/10

Expensive relative to growth rate

P/E RatioValuation
35.9x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.8%4/10

4.8% revenue growth

Profit MarginProfitability
5.1%3/10

5.1% margin — thin

SAP0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : CSGS

The strongest argument for CSGS centers on Return on Equity, EPS Growth.

Bull Case : SAP

The strongest argument for SAP centers on Market Cap, Operating Margin, Altman Z-Score. Profitability is solid with margins at 19.6% and operating margin at 30.0%. PEG of 0.74 suggests the stock is reasonably priced for its growth.

Bear Case : CSGS

The primary concerns for CSGS are PEG Ratio, P/E Ratio, Revenue Growth. Debt-to-equity of 2.07 is elevated, increasing financial risk.

Bear Case : SAP

No major red flags identified for SAP, but monitor valuation.

Key Dynamics to Monitor

CSGS profiles as a value stock while SAP is a mature play — different risk/reward profiles.

CSGS carries more volatility with a beta of 0.82 — expect wider price swings.

SAP is growing revenue faster at 6.0% — sustainability is the question.

SAP generates stronger free cash flow (3.3B), providing more financial flexibility.

Bottom Line

SAP scores higher overall (62/100 vs 60/100), backed by strong 19.6% 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.

CSG Systems International Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

CSG Systems International, Inc. provides revenue management, customer experience, and payment solutions primarily to the communications industry in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Greenwood Village, Colorado.

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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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