Alphabet vs Oracle Which Is Stronger?

Both Alphabet (Google) and Oracle are tech giants in the stock market, but they have unique strengths and weaknesses that set them apart. Alphabet's dominance in online advertising and search engine technology has made it a top performer in the market. On the other hand, Oracle's focus on cloud computing and enterprise software has also made it a popular choice for investors. As both companies continue to innovate and expand their offerings, the competition between Alphabet and Oracle stocks is sure to heat up.

Alphabet or Oracle?

When comparing Alphabet 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 Alphabet 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. Alphabet has a dividend yield of 0.23%, while Oracle has a dividend yield of 0.83%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Alphabet reports a 5-year dividend growth of 0.00% year and a payout ratio of 5.22%. 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 Alphabet P/E ratio at 22.78 and Oracle's P/E ratio at 48.22. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Alphabet P/B ratio is 6.84 while Oracle's P/B ratio is 48.93.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Alphabet has seen a 5-year revenue growth of 1.47%, while Oracle's is 0.92%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alphabet's ROE at 31.66% and Oracle's ROE at 148.73%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $173.55 for Alphabet and $186.43 for Oracle. Over the past year, Alphabet's prices ranged from $131.06 to $193.31, with a yearly change of 47.50%. Oracle's prices fluctuated between $99.26 and $196.04, with a yearly change of 97.50%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.