Accenture vs Oracle Which Is More Favorable?

Accenture and Oracle are two major players in the technology and consulting industries, each offering a unique investment opportunity for shareholders. Accenture is a global professional services company known for its expertise in strategy, consulting, digital, technology, and operations, while Oracle specializes in cloud applications and platform services. Both companies have shown strong financial performance in recent years, with Accenture boasting a higher stock price and Oracle offering a competitive dividend yield. Investors looking for exposure to the technology sector may find value in both Accenture and Oracle stocks.

Accenture or Oracle?

When comparing Accenture and Oracle, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Accenture and Oracle.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Accenture has a dividend yield of 1.89%, while Oracle has a dividend yield of 1.05%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Accenture reports a 5-year dividend growth of 10.76% year and a payout ratio of 44.57%. On the other hand, Oracle reports a 5-year dividend growth of 14.87% year and a payout ratio of 40.11%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Accenture P/E ratio at 31.43 and Oracle's P/E ratio at 47.68. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Accenture P/B ratio is 8.07 while Oracle's P/B ratio is 46.45.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Accenture has seen a 5-year revenue growth of 0.54%, while Oracle's is 0.92%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Accenture's ROE at 26.46% and Oracle's ROE at 146.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $356.95 for Accenture and $187.22 for Oracle. Over the past year, Accenture's prices ranged from $278.69 to $387.51, with a yearly change of 39.05%. Oracle's prices fluctuated between $99.26 and $191.50, with a yearly change of 92.93%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.