Well, reason why SAP is different from ORCL is that the best run business run SAP. 95% of the the Fortune 500 organizations based in US alone run SAP. They lead all industry sectors in Analytics,mobility and CRM . Oracle is basically a glorified Database company who relies on Federal govt contracts.. All of oracles products except for DB have been acquired and not organically developed. There is no chance of integrating these diverse apps unlike SAP's ERP which is far from dead. HANA is going to be the next level for which ORCL has no answer and will either again get into a hissy fit and file law suits all over the place or go crying to Uncle Sam for contracts..
Well I agree and I'm European. Book value for SAP of $15 per share, I mean how can the share price be vaued at $68 above book. This is crazy for a large, mature, slow growth company. It's priced for perfection.
I mean ORCL is I would say quite fully valued, not cheap by any means, yet it's price over book value is only $27. ORCL has a PE of 16, so quite high, but SAP has PE of 27. SAP is in a slower growth phase with ERP basically dead. They are relying on Hana etc., SAP is growing slower than ORCL, no question about that and the bigger projects now are tech, not applications. I would sell or short SAP, wait for a pullback in the market and maybe buy ORCL if you want exposure to a large cap tech stock. I'd wait till after the ORCL earnings though.
euros would support a rather large turd is it was branded as being european. No way sap should have a higher multiple than ORCL. Support for government subsidized euro jobs program airbutt is just as idiotic. No wonder europe is broke !!! America will probably have to save europe AGAIN....this time from themselves.......get your white flags ready