ALPHABET INC. vs SAP SE, two Software stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Neither line item here states growth, but the multiples barely disagree, 25.8 times earnings for Alphabet and 23.3 for SAP, which is itself the oddity: the market prices a $4.1T search-and-cloud empire and a $181B enterprise-software estate within three turns of each other. Alphabet's economics dominate, a 36.1% operating margin against 26.1%, returns on assets of 16.3% against 10.4%. SAP's rebuttal is distribution of cash, a 5.5% free-cash yield more than triple Alphabet's 1.6%, the difference between a company mid-buildout and one mid-harvest. Both are effectively unlevered. Similar prices per dollar of earnings, wildly different dollars: one reinvested into AI infrastructure, one returned.
Comparison updated 2026-07-10.
| Metric | GOOGL | SAP |
|---|---|---|
| Price | $338.02 | $155.23 |
| Market cap | $4.14T | $181.0B |
| Sector | Software | Software |
| Stage | Mature | Mature |
| P/E | 25.8 | 23.3 |
| P/B | 8.64 | 3.69 |
| P/S | 9.79 | 4.52 |
| EV/EBITDA | 28.3 | 16.5 |
| Revenue growth | +17.4% | +8.1% |
| Gross margin | — | 72.9% |
| Operating margin | 36.1% | 26.1% |
| Net margin | 27.1% | 19.9% |
| Return on equity | 23.9% | 16.3% |
| Return on assets | 16.3% | 10.4% |
| Return on invested capital | 20.0% | 15.2% |
| FCF yield | 1.6% | 5.5% |
| Dividend yield | 0.3% | — |
| Debt / equity | 0.17 | 0.00 |
| Current ratio | 1.92 | 1.16 |
| Altman Z (solvency) | 7.72 | 5.92 |
| Piotroski F (quality) | 4 / 9 | 7 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.