WallStSmart

Digimarc Corporation (DMRC)vsSAP SE ADR (SAP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

SAP SE ADR generates 116143% more annual revenue ($37.34B vs $32.12M). SAP leads profitability with a 19.6% profit margin vs -85.8%. DMRC appears more attractively valued with a PEG of 0.52. SAP earns a higher WallStSmart Score of 59/100 (C).

DMRC

Avoid

27

out of 100

Grade: F

Growth: 3.3Profit: 2.0Value: 7.7Quality: 5.5
Piotroski: 2/9Altman Z: -9.37

SAP

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 8.5Value: 4.7Quality: 6.8
Piotroski: 6/9Altman Z: 3.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DMRCUndervalued (+77.4%)

Margin of Safety

+77.4%

Fair Value

$22.92

Current Price

$13.63

$9.29 discount

UndervaluedFair: $22.92Overvalued
SAPSignificantly Overvalued (-34.7%)

Margin of Safety

-34.7%

Fair Value

$145.83

Current Price

$184.77

$38.94 premium

UndervaluedFair: $145.83Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DMRC2 strengths · Avg: 8.5/10
Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.528/10

Growing faster than its price suggests

SAP4 strengths · Avg: 9.3/10
Operating MarginProfitability
30.0%10/10

Strong operational efficiency at 30.0%

Altman Z-ScoreHealth
3.1110/10

Safe zone — low bankruptcy risk

Market CapQuality
$192.92B9/10

Large-cap with strong market position

Free Cash FlowQuality
$3.27B8/10

Generating 3.3B in free cash flow

Areas to Watch

DMRC4 concerns · Avg: 3.5/10
Price/BookValuation
8.9x4/10

Trading at 8.9x book value

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$303.16M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

SAP0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : DMRC

The strongest argument for DMRC centers on Debt/Equity, PEG Ratio. PEG of 0.52 suggests the stock is reasonably priced for its growth.

Bull Case : SAP

The strongest argument for SAP centers on Operating Margin, Altman Z-Score, Market Cap. Profitability is solid with margins at 19.6% and operating margin at 30.0%. PEG of 1.44 suggests the stock is reasonably priced for its growth.

Bear Case : DMRC

The primary concerns for DMRC are Price/Book, EPS Growth, Market Cap.

Bear Case : SAP

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

Key Dynamics to Monitor

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

DMRC carries more volatility with a beta of 2.19 — 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 (59/100 vs 27/100), backed by strong 19.6% margins. DMRC offers better value entry with a 77.4% margin of safety. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Digimarc Corporation

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Digimarc Corporation offers automatic identification solutions to commercial and government customers in the United States and internationally. The company is headquartered in Beaverton, Oregon.

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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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