Rand Worldwide (OTCMKTS:RWWI) vs. SAP (NYSE:SAP) Critical Analysis

Rand Worldwide (OTCMKTS:RWWI) and SAP (NYSE:SAP) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.

Earnings and Valuation

This table compares Rand Worldwide and SAP”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rand Worldwide	$178.84 million	3.09	$46.59 million	$1.21	13.59
SAP	$41.63 billion	5.17	$8.10 billion	$7.40	23.66

SAP has higher revenue and earnings than Rand Worldwide. Rand Worldwide is trading at a lower price-to-earnings ratio than SAP, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Rand Worldwide has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500. Comparatively, SAP has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Rand Worldwide and SAP, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rand Worldwide	0	0	0	0	0.00
SAP	0	7	12	2	2.76

SAP has a consensus target price of $287.75, suggesting a potential upside of 64.34%. Given SAP’s stronger consensus rating and higher probable upside, analysts plainly believe SAP is more favorable than Rand Worldwide.

Insider & Institutional Ownership

0.0% of Rand Worldwide shares are held by institutional investors. 59.2% of Rand Worldwide shares are held by insiders. Comparatively, 7.4% of SAP shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Rand Worldwide and SAP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rand Worldwide	28.30%	83.67%	25.85%
SAP	20.08%	17.62%	11.03%

Summary

SAP beats Rand Worldwide on 10 of the 15 factors compared between the two stocks.

About Rand Worldwide

Rand Worldwide, Inc. provides design automation and data management solutions primarily in the United States and Canada. It operates in five divisions: IMAGINiT Technologies, Rand Simulation, Facilities Management, ASCENT, and Rand 3D. The IMAGINiT Technologies division resells Autodesk solutions and system integration, and consulting services to customers in the manufacturing, infrastructure, building, and media and entertainment industries; resells Twinmotion visualization software, which provides design professionals to transform architectural models and designs into photorealistic images and immersive videos; offers a range of 3D laser scanning equipment and related software to help architectural, engineering, and construction firms; and sells its own proprietary software products and related services. The Rand Simulation division offers Ansys engineering simulation software to help organizations incorporate engineering simulation technology into the product development process; and provides simulation consulting services to enable organizations to achieve cost savings and design improvements through simulation technology. The Facilities Management division provides ARCHIBUS products for facilities management software for space planning, strategic planning, and lease/property administration; and offers various training, consulting, and support services for the ARCHIBUS products. The ASCENT division provides professional training materials and knowledge products for engineering software tools. The Rand 3D division offers training solutions for Dassault Systèmes and PTC products, including Pro/ENGINEER, CREO, and Windchill. Rand Worldwide, Inc. is based in Baltimore, Maryland.

About SAP

SAP SE, together with its subsidiaries, provides applications, technology, and services worldwide. It offers SAP S/4HANA that provides software capabilities for finance, risk and project management, procurement, manufacturing, supply chain and asset management, and research and development; SAP SuccessFactors solutions for human resources, including HR and payroll, talent and employee experience management, and people and workforce analytics; and spend management solutions that covers direct and indirect spend, travel and expense, and external workforce management. The company also provides SAP customer experience solutions; SAP Business Technology platform that enables customers and partners to build, integrate, and automate applications; and SAP Business Network, a business-to-business collaboration platform that helps digitalize key business processes across the supply chain and enables communication between trading partners. In addition, it offers SAP Signavio to help customers to discover, analyze, and understand their business process operations; SAP's industry cloud solutions that provides modular solutions addressing industry-specific functions; Taulia solutions for working capital management to help enable customers mitigate the effects of inflation by providing visibility into working capital and access to liquidity; and sustainability solutions and services. SAP SE was founded in 1972 and is headquartered in Walldorf, Germany.