WallStSmart

Moodys Corporation (MCO)vsSAP SE ADR (SAP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

SAP SE ADR generates 377% more annual revenue ($36.80B vs $7.72B). MCO leads profitability with a 31.9% profit margin vs 19.5%. SAP appears more attractively valued with a PEG of 0.79. MCO earns a higher WallStSmart Score of 71/100 (B).

MCO

Strong Buy

71

out of 100

Grade: B

Growth: 8.0Profit: 9.5Value: 10.0Quality: 6.8
Piotroski: 6/9Altman Z: 2.99

SAP

Buy

58

out of 100

Grade: C

Growth: 5.3Profit: 8.5Value: 7.3Quality: 8.0
Piotroski: 6/9Altman Z: 3.09
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MCOUndervalued (+33.1%)

Margin of Safety

+33.1%

Fair Value

$639.76

Current Price

$428.05

$211.71 discount

UndervaluedFair: $639.76Overvalued
SAPSignificantly Overvalued (-88.8%)

Margin of Safety

-88.8%

Fair Value

$104.04

Current Price

$168.95

$64.91 premium

UndervaluedFair: $104.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MCO5 strengths · Avg: 9.8/10
Return on EquityProfitability
62.1%10/10

Every $100 of equity generates 62 in profit

Profit MarginProfitability
31.9%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
42.1%10/10

Strong operational efficiency at 42.1%

EPS GrowthGrowth
57.6%10/10

Earnings expanding 57.6% YoY

Market CapQuality
$76.27B9/10

Large-cap with strong market position

SAP6 strengths · Avg: 8.8/10
Market CapQuality
$217.55B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
3.0910/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.798/10

Growing faster than its price suggests

Operating MarginProfitability
29.2%8/10

Strong operational efficiency at 29.2%

Free Cash FlowQuality
$1.09B8/10

Generating 1.1B in free cash flow

Areas to Watch

MCO3 concerns · Avg: 4.0/10
PEG RatioValuation
1.934/10

Expensive relative to growth rate

P/E RatioValuation
31.3x4/10

Premium valuation, high expectations priced in

Price/BookValuation
18.7x4/10

Trading at 18.7x book value

SAP2 concerns · Avg: 4.0/10
P/E RatioValuation
26.3x4/10

Moderate valuation

Revenue GrowthGrowth
3.3%4/10

3.3% revenue growth

Comparative Analysis Report

WallStSmart Research

Bull Case : MCO

The strongest argument for MCO centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 31.9% and operating margin at 42.1%. Revenue growth of 13.0% demonstrates continued momentum.

Bull Case : SAP

The strongest argument for SAP centers on Market Cap, Altman Z-Score, Debt/Equity. Profitability is solid with margins at 19.5% and operating margin at 29.2%. PEG of 0.79 suggests the stock is reasonably priced for its growth.

Bear Case : MCO

The primary concerns for MCO are PEG Ratio, P/E Ratio, Price/Book.

Bear Case : SAP

The primary concerns for SAP are P/E Ratio, Revenue Growth.

Key Dynamics to Monitor

MCO profiles as a mature stock while SAP is a value play — different risk/reward profiles.

MCO carries more volatility with a beta of 1.44 — expect wider price swings.

MCO is growing revenue faster at 13.0% — sustainability is the question.

SAP generates stronger free cash flow (1.1B), providing more financial flexibility.

Bottom Line

MCO scores higher overall (71/100 vs 58/100), backed by strong 31.9% margins and 13.0% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Moodys Corporation

FINANCIAL SERVICES · FINANCIAL DATA & STOCK EXCHANGES · USA

Moody's Corporation, often referred to as Moody's, is an American business and financial services company. It is the holding company for Moody's Investors Service (MIS), an American credit rating agency, and Moody's Analytics (MA), an American provider of financial analysis software and services.

SAP SE ADR

TECHNOLOGY · SOFTWARE - APPLICATION · USA

SAP SE is a global enterprise application software company. The company is headquartered in Walldorf, Germany.

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