Académique Documents
Professionnel Documents
Culture Documents
A COMPARATIVE ANALYSIS IMAN TAYLOR, NICK ANTONUCCI, SERGE NGATTA, VLAD RUSANOV
Background Information
SAP
Manhattan Associates
Founded in 1972 Based in Walldorf, Germany Leader in enterprise software and software-related services
Founded in 1989 Based in Atlanta, GA Develops and markets supply chain commerce software
SAP
Manhattan Associates
SAP
Manhattan Associates
Market Cap: $95 billion LT Debt: $16 billion Working Capital: $594 million Current Ratio: 1.07 Quick Ratio: 0.94 Do not carry inventory Leverage Ratio (Assets/Equity): 670.60
Market Cap: $1 billion LT Debt: $0 Working Capital: $90 million Current Ratio: 1.99 Quick Ratio: 1.81 Do not carry inventory Leverage Ratio (Assets/Equity): 4.24
SAP
Manhattan Associates
3 Yr Sales Growth: 11.92% 3 Yr Earnings Growth: 14.20% Profit Margin: 18.59% 2012 Revs: $22 billion ($4.21/shr) 2012 EPS: $3.42
3 Yr Sales Growth: 15.11% 3 Yr Earnings Growth: 27.11% Profit Margin: 3.66% 2012 Revs: $376 million ($4.91/shr) 2012 EPS: $0.68
SAP
SAP Profit Margin (Millions)
30 25 20 15 10 5 0 2012 2011 2010 2009 2008 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0
Manhattan Associates
MANH Profit Margin (Percent)
2012
2011
2010
2009
2008
Revenue Analysis
300
250 200 150 100 50 0 2012 2011 2010 2009 2008
2011
2010
2009
2008
SAP
Manhattan Associates
Return on Assets: 11.28% Return on Equity: 21.02% FCF/ Share: $3.54 (2.62% CAGR) CFO/ Liabilities: 30.18 Interest Coverage: 28.39x
Return on Assets: 19.89% Return on Equity: 32.05% FCF/ Share: $3.42 (11% CAGR) CFO/ Liabilities: 75.04 Interest Coverage: No debt
SAP
MANH
SAP
MANH
Beta (3yr): 1.11 P/E Ratio: 25.70 Long-Term Growth Rate: 12.24% PEG Ratio: 2.10 P/B: 4.47 *In-line with 3-year average P/S: 5.13 *In-line with 3-year average Dividend Yield: 1.72% *Covered 2.78x
Beta (3yr): 1.02 P/E Ratio: 23.48 Long-Term Growth Rate: 21.74% PEG Ratio: 1.08 P/B: 3.15 *In-line with 3-year average P/S: 7.33 *In-line with 3-year average Dividend Yield: 0%
MANH
ROE: 21.09% Profit Margin: 21.98% Total Asset Turnover: 0.65 Equity Multiplier: 1.86
ROE: 32.05% Profit Margin: 13.08% Total Asset Turnover: 1.44 Equity Multiplier: 1.61
1-Year Return 3-Year Return 5-Year Return 49.06% 55.38% 14.81% 15.99% 34.28% 21.27% 8.71% 10.47% 18.30% 11.03% 3.31% 1.51%
** Data as of 12/31/2012
Investment Recommendation
With both companies being in the same industry, they face many of the same qualitative risks. As a result, we focused largely on the quantitative metrics of each and came to the conclusion that while both companies appear to be sound investments that will likely outperform the S&P 500 in the coming year, we would prefer to own Manhattan Associates due to its higher expected growth, lower relative valuation, and seemingly stronger balance sheet.
Questions?
Thank you!