Amazon.com vs Oracle

Amazon.com and Oracle are two tech giants in the stock market, but they operate in different sectors within the tech industry. Amazon.com is known for its dominance in e-commerce and cloud computing, while Oracle is a major player in database software and enterprise technology solutions. Investors often compare the performance of these two stocks due to their size and influence in the market. Understanding the key differences in their business models and growth potential is crucial for making informed investment decisions.

Amazon.com or Oracle?

When comparing Amazon.com 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 Amazon.com 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. Amazon.com has a dividend yield of -%, while Oracle has a dividend yield of 1.15%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Amazon.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 Amazon.com P/E ratio at 44.14 and Oracle's P/E ratio at 43.79. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Amazon.com P/B ratio is 8.29 while Oracle's P/B ratio is 42.65.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Amazon.com has seen a 5-year revenue growth of 1.33%, while Oracle's is 0.92%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.20% and Oracle's ROE at 146.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $184.58 for Amazon.com and $173.75 for Oracle. Over the past year, Amazon.com's prices ranged from $118.35 to $201.20, with a yearly change of 70.00%. Oracle's prices fluctuated between $99.26 and $178.61, with a yearly change of 79.94%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.