MICROSOFT CORPORATION vs SAP SE, two Software stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Microsoft is an empire that happens to sell software, cloud, infrastructure, and AI platforms at planetary scale; SAP is a single estate, enterprise applications, farmed intensively for decades. The empire earns imperially, a 46.3% operating margin against SAP's 26.1%, returns on assets of 16.5% against 10.4%. The market prices them almost identically anyway, 22.1 and 23.3 times earnings, which makes this pair the sector's cleanest puzzle: the same multiple buys nearly double the margin at sixteen times the scale. SAP's rebuttals are a 5.5% free-cash yield against 2.6% and a debt-free sheet against Microsooft's already-light 0.12. At these prices the market is either underrating the empire or quietly grading its size.
Comparison updated 2026-07-10.
| Metric | MSFT | SAP |
|---|---|---|
| Price | $371.94 | $155.23 |
| Market cap | $2.77T | $181.0B |
| Sector | Software | Software |
| Stage | Mature | Mature |
| Implied growth (priced in) | +14.3% | — |
| P/E | 22.1 | 23.3 |
| P/B | 6.68 | 3.69 |
| P/S | 8.70 | 4.52 |
| EV/EBITDA | 15.3 | 16.5 |
| Revenue growth | +17.9% | +8.1% |
| Gross margin | 67.6% | 72.9% |
| Operating margin | 46.3% | 26.1% |
| Net margin | 36.0% | 19.9% |
| Return on equity | 27.6% | 16.3% |
| Return on assets | 16.5% | 10.4% |
| Return on invested capital | 26.0% | 15.2% |
| FCF yield | 2.6% | 5.5% |
| Dividend yield | 0.9% | — |
| Debt / equity | 0.12 | 0.00 |
| Current ratio | 1.28 | 1.16 |
| Altman Z (solvency) | 7.25 | 5.92 |
| Piotroski F (quality) | 5 / 9 | 7 / 9 |
Each week boothcheck ranks the stocks whose prices are betting on the most. Read the most stretched bets archive →
boothcheck is also on Android. Get the app on Google Play →
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.