Compare Tyler Technologies, Inc. (TYL) vs SAP SE (SAP) Stock

SAP SE (SAP) offers the better valuation at 28.5x trailing P/E (27.8x forward), making it the more compelling value choice. Analysts rate Tyler Technologies, Inc. (TYL) a "Buy" — based on 35 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, SAP SE (SAP) is the cheapest at 28.5x versus Tyler Technologies, Inc. at 58.6x. On forward P/E, SAP SE is actually cheaper at 27.8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Tyler Technologies, Inc. wins at 2.66x versus SAP SE's 4.20x.

Over the past 5 years, SAP SE (SAP) delivered a total return of +71.7%, compared to -25.6% for Tyler Technologies, Inc. (TYL). A $10,000 investment in SAP five years ago would be worth approximately $17K today (assuming dividends reinvested). Over 10 years, the gap is even starker: TYL returned +194.8% versus SAP's +193.8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Tyler Technologies, Inc. (TYL) is the lower-risk stock at 0.68β versus SAP SE's 0.86β — meaning SAP is approximately 26% more volatile than TYL relative to the S&P 500. On balance sheet safety, SAP SE (SAP) carries a lower debt/equity ratio of 18% versus 19% for Tyler Technologies, Inc. — giving it more financial flexibility in a downturn.

SAP SE (SAP) is the more profitable company, earning 19.9% net margin versus 12.3% for Tyler Technologies, Inc. — meaning it keeps 19.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SAP leads at 28.0% versus 14.0% for TYL. At the gross margin level — before operating expenses — SAP leads at 73.5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Tyler Technologies, Inc. (TYL) is the more undervalued stock at a PEG of 2.66x versus SAP SE's 4.20x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, SAP SE (SAP) trades at 27.8x forward P/E versus 28.3x for Tyler Technologies, Inc. — 0.5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SAP: 106.1% to $415.33.

In this comparison, SAP (1.3% yield) pays a dividend. TYL does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, SAP SE (SAP) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.86), 1.3% yield, +193.8% 10Y return). Both have compounded well over 10 years (SAP: +193.8%, TYL: +194.8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. SAP pays a dividend while TYL does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.