HP vs Oracle Which Is a Smarter Choice?

HP Inc. and Oracle Corporation are two titans in the tech industry, both offering a wide range of products and services to businesses and consumers. The stocks of these companies have been closely watched by investors due to their strong market positions and financial performance. HP Inc. focuses on hardware like printers and laptops, while Oracle specializes in software and cloud services. This comparison of their stocks will analyze factors such as revenue growth, profitability, and market trends to help investors make informed decisions.

HP or Oracle?

When comparing HP 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 HP 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. HP has a dividend yield of 3.66%, while Oracle has a dividend yield of 1.06%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. HP reports a 5-year dividend growth of 12.96% year and a payout ratio of 37.71%. 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 HP P/E ratio at 12.97 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. HP P/B ratio is -26.49 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, HP has seen a 5-year revenue growth of 0.50%, while Oracle's is 0.92%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with HP's ROE at -226.67% and Oracle's ROE at 146.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $36.80 for HP and $187.84 for Oracle. Over the past year, HP's prices ranged from $27.43 to $39.52, with a yearly change of 44.08%. 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.