Comprehensive Stock Comparison
Compare Snowflake Inc. (SNOW) vs SAP SE (SAP) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | SNOW | 29.2% revenue growth vs SAP's 3.4% |
| Value | SAP | Lower P/E (27.8x vs 95.0x) |
| Quality / Margins | SAP | 19.9% net margin vs SNOW's -28.4% |
| Stability / Safety | SAP | Beta 0.86 vs SNOW's 1.49, lower leverage |
| Dividends | SAP | 1.3% yield; 2-year raise streak; SNOW pays no meaningful dividend |
| Momentum (1Y) | SNOW | -4.9% vs SAP's -25.8% |
| Efficiency (ROA) | SAP | 10.4% ROA vs SNOW's -14.6%, ROIC 16.1% vs -43.1% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Snowflake provides a cloud-native data platform that enables organizations to store, process, and analyze data across multiple cloud providers. It generates revenue primarily through consumption-based pricing for compute, storage, and data transfer services — with compute typically representing the largest portion. Its key advantage is a unique architecture that separates storage and compute, allowing customers to scale each independently while avoiding vendor lock-in through multi-cloud compatibility.
SAP is a global enterprise software company that provides business applications, technology platforms, and cloud services for organizations worldwide. It generates revenue primarily through software licenses and cloud subscriptions — with cloud services now representing over 40% of total revenue — along with consulting and support services. The company's key advantage is its deep integration across business functions — from finance to supply chain to HR — creating switching costs and network effects within its large enterprise customer base.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
SAP leads in 5 of 6 categories — strongest in Financial Metrics and Valuation Metrics.
Financial Metrics (TTM)
SAP is the larger business by revenue, generating $36.7B annually — 7.8x SNOW's $4.7B. SAP is the more profitable business, keeping 19.9% of every revenue dollar as net income compared to SNOW's -28.4%. On growth, SNOW holds the edge at +30.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | SNOWSnowflake Inc. | SAPSAP SE |
|---|---|---|
| RevenueTrailing 12 months | $4.7B | $36.7B |
| EBITDAEarnings before interest/tax | -$1.3B | $11.5B |
| Net IncomeAfter-tax profit | -$1.3B | $7.3B |
| Free Cash FlowCash after capex | $1.1B | $8.4B |
| Gross MarginGross profit ÷ Revenue | +67.2% | +73.3% |
| Operating MarginEBIT ÷ Revenue | -30.6% | +27.0% |
| Net MarginNet income ÷ Revenue | -28.4% | +19.9% |
| FCF MarginFCF ÷ Revenue | +23.9% | +22.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +30.1% | +2.3% |
| EPS Growth (YoY)Latest quarter vs prior year | +9.1% | +14.7% |
Valuation Metrics
| Metric | SNOWSnowflake Inc. | SAPSAP SE |
|---|---|---|
| Market CapShares × price | $57.7B | $234.7B |
| Enterprise ValueMkt cap + debt − cash | $57.6B | $234.5B |
| Trailing P/EPrice ÷ TTM EPS | -42.64x | 28.52x |
| Forward P/EPrice ÷ next-FY EPS est. | 95.01x | 27.77x |
| PEG RatioP/E ÷ EPS growth rate | — | 4.32x |
| EV / EBITDAEnterprise value multiple | — | 17.84x |
| Price / SalesMarket cap ÷ Revenue | 12.31x | 5.63x |
| Price / BookPrice ÷ Book value/share | 28.15x | 4.44x |
| Price / FCFMarket cap ÷ FCF | 51.48x | 25.07x |
Profitability & Efficiency
SAP delivers a 16.2% return on equity — every $100 of shareholder capital generates $16 in annual profit, vs $-66 for SNOW. SAP carries lower financial leverage with a 0.18x debt-to-equity ratio, signaling a more conservative balance sheet compared to SNOW's 1.36x. On the Piotroski fundamental quality scale (0–9), SAP scores 9/9 vs SNOW's 5/9, reflecting strong financial health.
| Metric | SNOWSnowflake Inc. | SAPSAP SE |
|---|---|---|
| ROE (TTM)Return on equity | -65.9% | +16.2% |
| ROA (TTM)Return on assets | -14.6% | +10.4% |
| ROICReturn on invested capital | -43.1% | +16.1% |
| ROCEReturn on capital employed | -27.5% | +18.3% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 9 |
| Debt / EquityFinancial leverage | 1.36x | 0.18x |
| Net DebtTotal debt minus cash | -$87M | -$149M |
| Cash & Equiv.Liquid assets | $2.8B | $8.2B |
| Total DebtShort + long-term debt | $2.7B | $8.1B |
| Interest CoverageEBIT ÷ Interest expense | -115.44x | 8.94x |
Total Returns (with DRIP)
A $10,000 investment in SAP five years ago would be worth $17,166 today (with dividends reinvested), compared to $6,188 for SNOW. Over the past 12 months, SNOW leads with a -4.9% total return vs SAP's -25.8%. The 3-year compound annual growth rate (CAGR) favors SAP at 22.4% vs SNOW's 2.9% — a key indicator of consistent wealth creation.
| Metric | SNOWSnowflake Inc. | SAPSAP SE |
|---|---|---|
| YTD ReturnYear-to-date | -22.3% | -14.9% |
| 1-Year ReturnPast 12 months | -4.9% | -25.8% |
| 3-Year ReturnCumulative with dividends | +9.1% | +83.4% |
| 5-Year ReturnCumulative with dividends | -38.1% | +71.7% |
| 10-Year ReturnCumulative with dividends | -33.7% | +193.8% |
| CAGR (3Y)Annualised 3-year return | +2.9% | +22.4% |
Risk & Volatility
SAP is the less volatile stock with a 0.86 beta — it tends to amplify market swings less than SNOW's 1.49 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. SAP currently trades 64.3% from its 52-week high vs SNOW's 60.0% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | SNOWSnowflake Inc. | SAPSAP SE |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.49x | 0.86x |
| 52-Week HighHighest price in past year | $280.67 | $313.28 |
| 52-Week LowLowest price in past year | $120.10 | $189.22 |
| % of 52W HighCurrent price vs 52-week peak | +60.0% | +64.3% |
| RSI (14)Momentum oscillator 0–100 | 43.8 | 45.3 |
| Avg Volume (50D)Average daily shares traded | 4.4M | 2.4M |
Analyst Outlook
Wall Street rates SNOW as "Buy" and SAP as "Buy". Consensus price targets imply 106.1% upside for SAP (target: $415) vs 49.4% for SNOW (target: $252). SAP is the only dividend payer here at 1.31% yield — a key consideration for income-focused portfolios.
| Metric | SNOWSnowflake Inc. | SAPSAP SE |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $251.60 | $415.33 |
| # AnalystsCovering analysts | 49 | 43 |
| Dividend YieldAnnual dividend ÷ price | — | +1.3% |
| Dividend StreakConsecutive years of raises | — | 2 |
| Dividend / ShareAnnual DPS | — | $2.24 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.2% | +0.9% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Sep 20 | Feb 26 | Change |
|---|---|---|---|
| Snowflake Inc. (SNOW) | 100 | 75.09 | -24.9% |
| SAP SE (SAP) | 100 | 132.15 | +32.1% |
SAP SE (SAP) returned +72% over 5 years vs Snowflake Inc. (SNOW)'s -38%. A $10,000 investment in SAP 5 years ago would be worth $17,166 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Snowflake Inc. (SNOW) | $97M | $4.7B | +4745.5% |
| SAP SE (SAP) | $23.5B | $35.3B | +50.7% |
Chart 3Net Margin Trend — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Snowflake Inc. (SNOW) | -184.2% | -28.4% | +84.6% |
| SAP SE (SAP) | 17.1% | 19.9% | +16.5% |
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| SAP SE (SAP) | 33.5 | 40.6 | +21.2% |
SAP SE has traded in a 29x–93x P/E range over 9 years; current trailing P/E is ~29x.
Chart 5EPS Growth — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Snowflake Inc. (SNOW) | -0.75 | -3.95 | -426.7% |
| SAP SE (SAP) | 3.35 | 5.99 | +78.8% |
Chart 6Free Cash Flow — 5 Years
Snowflake Inc. generated $1B FCF in 2026 (+1407% vs 2021). SAP SE generated $8B FCF in 2025 (+44% vs 2021).
SNOW vs SAP: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is SNOW or SAP a better buy right now?
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 Snowflake Inc. (SNOW) a "Buy" — based on 49 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.
02Which has the better valuation — SNOW or SAP?
On forward P/E, SAP SE is actually cheaper at 27.8x.
03Which is the better long-term investment — SNOW or SAP?
Over the past 5 years, SAP SE (SAP) delivered a total return of +71.7%, compared to -38.1% for Snowflake Inc. (SNOW). 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: SAP returned +193.8% versus SNOW's -33.7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — SNOW or SAP?
By beta (market sensitivity over 5 years), SAP SE (SAP) is the lower-risk stock at 0.86β versus Snowflake Inc.'s 1.49β — meaning SNOW is approximately 73% more volatile than SAP relative to the S&P 500. On balance sheet safety, SAP SE (SAP) carries a lower debt/equity ratio of 18% versus 136% for Snowflake Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — SNOW or SAP?
SAP SE (SAP) is the more profitable company, earning 19.9% net margin versus -28.4% for Snowflake 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 -30.6% for SNOW. 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.
06Is SNOW or SAP more undervalued right now?
On forward earnings alone, SAP SE (SAP) trades at 27.8x forward P/E versus 95.0x for Snowflake Inc. — 67.2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SAP: 106.1% to $415.33.
07Which pays a better dividend — SNOW or SAP?
In this comparison, SAP (1.3% yield) pays a dividend. SNOW does not pay a meaningful dividend and should not be held primarily for income.
08Is SNOW or SAP better for a retirement portfolio?
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%, SNOW: -33.7%), 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.
09What are the main differences between SNOW and SAP?
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 SNOW 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.
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