WallStSmart

SAP SE ADR (SAP)vsVertex (VERX)

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Smart Verdict

WallStSmart Research — data-driven comparison

SAP SE ADR generates 4750% more annual revenue ($38.19B vs $787.44M). SAP leads profitability with a 20.4% profit margin vs 0.5%. SAP trades at a lower P/E of 27.3x. SAP earns a higher WallStSmart Score of 64/100 (C+).

SAP

Buy

64

out of 100

Grade: C+

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

VERX

Avoid

31

out of 100

Grade: F

Growth: 5.3Profit: 3.5Value: 5.7Quality: 3.0
Piotroski: 3/9Altman Z: 0.70
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SAPSignificantly Overvalued (-29.9%)

Margin of Safety

-29.9%

Fair Value

$151.18

Current Price

$210.68

$59.50 premium

UndervaluedFair: $151.18Overvalued
VERXUndervalued (+55.3%)

Margin of Safety

+55.3%

Fair Value

$28.69

Current Price

$11.37

$17.32 discount

UndervaluedFair: $28.69Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SAP6 strengths · Avg: 9.0/10
Market CapQuality
$241.75B10/10

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

VERX0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

SAP3 concerns · Avg: 3.3/10
PEG RatioValuation
1.604/10

Expensive relative to growth rate

P/E RatioValuation
27.3x4/10

Moderate valuation

Price/BookValuation
66.3x2/10

Trading at 66.3x book value

VERX4 concerns · Avg: 3.0/10
Market CapQuality
$1.96B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
0.5%3/10

0.5% margin — thin

Operating MarginProfitability
3.4%3/10

Operating margin of 3.4%

Debt/EquityHealth
1.453/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

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%.

Bull Case : VERX

Revenue growth of 10.5% demonstrates continued momentum.

Bear Case : SAP

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

Bear Case : VERX

The primary concerns for VERX are Market Cap, Profit Margin, Operating Margin. A P/E of 604.0x leaves little room for execution misses. Thin 0.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

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

VERX is growing revenue faster at 10.5% — 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 31/100), backed by strong 20.4% margins. VERX offers better value entry with a 55.3% 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.

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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Vertex

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Vertex, Inc. provides tax technology solutions for corporations in the retail, communications, leasing, and manufacturing industries in the United States and internationally. The company is headquartered in King of Prussia, Pennsylvania.

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