SMA Solar Technology (ETR:S92) and Software Aktiengesellschaft (ETR:SOW) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.
Analyst Recommendations
This is a summary of current recommendations for SMA Solar Technology and Software Aktiengesellschaft, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
SMA Solar Technology | 1 | 1 | 2 | 0 | 2.25 |
Software Aktiengesellschaft | 0 | 7 | 4 | 0 | 2.36 |
SMA Solar Technology presently has a consensus price target of €50.25, indicating a potential upside of 4.69%. Software Aktiengesellschaft has a consensus price target of €38.87, indicating a potential upside of ∞. Given Software Aktiengesellschaft's stronger consensus rating and higher possible upside, analysts clearly believe Software Aktiengesellschaft is more favorable than SMA Solar Technology.
Profitability
This table compares SMA Solar Technology and Software Aktiengesellschaft's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
SMA Solar Technology | N/A | N/A | N/A |
Software Aktiengesellschaft | N/A | N/A | N/A |
Earnings and Valuation
This table compares SMA Solar Technology and Software Aktiengesellschaft's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
SMA Solar Technology | $1.03 billion | 1.62 | $28.11 million | €0.81 | 59.26 |
Software Aktiengesellschaft | $834.85 million | 0.00 | $95.43 million | €1.29 | N/A |
Software Aktiengesellschaft has lower revenue, but higher earnings than SMA Solar Technology. Software Aktiengesellschaft is trading at a lower price-to-earnings ratio than SMA Solar Technology, indicating that it is currently the more affordable of the two stocks.
Dividends
SMA Solar Technology pays an annual dividend of €0.35 per share and has a dividend yield of 0.7%. Software Aktiengesellschaft pays an annual dividend of €0.76 per share. SMA Solar Technology pays out 43.2% of its earnings in the form of a dividend. Software Aktiengesellschaft pays out 58.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. SMA Solar Technology is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Software Aktiengesellschaft beats SMA Solar Technology on 5 of the 9 factors compared between the two stocks.