Sage Group is in the later stages of its transformation from an on-premises software provider selling perpetual licenses to a cloud-based software-as-service, or SaaS, business model where it sells its software products via subscription.
Sage is over the hump in its transition to a primary cloud-focused software company. which means operating margins should rise going forward as the benefits of scale kick in.
The market for financial management software for small- and midsize businesses is fragmented, limiting pricing power in the industry.
|
Metric
|
SGE
|
INTU
|
SAP
|
|---|---|---|---|
Price/Earnings (Normalized) | 35.40 | 41.13 | 32.26 |
Price/Book Value | 8.52 | 10.37 | 4.67 |
Price/Sales | 5.56 | 11.77 | 6.37 |
Price/Cash Flow | 32.93 | 36.31 | 43.90 |
|
Metric
|
SGE
|
INTU
|
SAP
|
|---|---|---|---|
Quick Ratio | 0.88 | 0.57 | 1.12 |
Current Ratio | 0.94 | 1.17 | 1.25 |
Interest Coverage | 7.14 | 13.53 | 4.75 |
|
Metric
|
SGE
|
INTU
|
SAP
|
|---|---|---|---|
Return on Assets (Normalized) | 8.49% | 15.60% | 11.27% |
Return on Equity (Normalized) | 24.01% | 26.20% | 18.79% |
Return on Invested Capital (Normalized) | 13.48% | 19.07% | 15.28% |
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Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
CRM
| Salesforce Inc | Ccxtjqhd | Jkhf | $266.1 Bil | |
SAP
| SAP SE ADR | Rlhp | Ymppqy | $217.9 Bil | |
INTU
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NOW
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UBER
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SHOP
| Shopify Inc Registered Shs -A- Subord Vtg | Cwjdnppk | Zkppwn | $91.8 Bil | |
CDNS
| Cadence Design Systems Inc | Slrdldzhg | Lvfjxz | $76.9 Bil | |
WDAY
| Workday Inc Class A | Plnwcxtsd | Jvkc | $67.6 Bil | |
ROP
| Roper Technologies Inc | Tmkpwkfz | Hmtxh | $56.4 Bil | |
DASTY
| Dassault Systemes SE ADR | Qjysysslw | Ldjx | $53.2 Bil |
