Goldman Sachs vs Oracle Which Is Superior?

Goldman Sachs and Oracle are two well-known companies in the finance and technology sectors, respectively. Both companies have had their fair share of successes and challenges in the stock market. Goldman Sachs is a leading investment banking and financial services company, while Oracle is a multinational computer technology corporation. This comparison of their stocks will analyze factors such as market performance, financial stability, and growth potential to determine which may be a more profitable investment option.

Goldman Sachs or Oracle?

When comparing Goldman Sachs 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 Goldman Sachs 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. Goldman Sachs has a dividend yield of 1.87%, while Oracle has a dividend yield of 1.06%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Goldman Sachs reports a 5-year dividend growth of 27.23% year and a payout ratio of 36.22%. 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 Goldman Sachs P/E ratio at 16.07 and Oracle's P/E ratio at 47.57. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Goldman Sachs P/B ratio is 1.62 while Oracle's P/B ratio is 46.34.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Goldman Sachs has seen a 5-year revenue growth of 0.57%, while Oracle's is 0.92%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Goldman Sachs's ROE at 10.23% and Oracle's ROE at 146.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $596.16 for Goldman Sachs and $187.84 for Oracle. Over the past year, Goldman Sachs's prices ranged from $323.53 to $607.15, with a yearly change of 87.66%. Oracle's prices fluctuated between $99.26 and $191.45, with a yearly change of 92.88%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.