Infosys vs Oracle Which Is More Reliable?

Infosys and Oracle are two prominent players in the technology industry, known for their software solutions and services. Both companies have been actively involved in the development of cutting-edge technology and have wide-ranging clientele. The stocks of Infosys and Oracle have been closely followed by investors and analysts, as they represent the financial performance and potential growth of these companies. Understanding the differences and similarities between Infosys and Oracle stocks can provide valuable insights for investors in the tech sector.

Infosys or Oracle?

When comparing Infosys 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 Infosys 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. Infosys has a dividend yield of 2.95%, while Oracle has a dividend yield of 1.03%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Infosys reports a 5-year dividend growth of 12.90% year and a payout ratio of 69.20%. On the other hand, Oracle reports a 5-year dividend growth of 11.95% year and a payout ratio of 38.04%.

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 Infosys P/E ratio at 25.44 and Oracle's P/E ratio at 37.24. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Infosys P/B ratio is 8.15 while Oracle's P/B ratio is 31.49.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Infosys has seen a 5-year revenue growth of 0.65%, while Oracle's is 0.78%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Infosys's ROE at 31.74% and Oracle's ROE at 119.57%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $19.51 for Infosys and $148.50 for Oracle. Over the past year, Infosys's prices ranged from $16.04 to $23.63, with a yearly change of 47.32%. Oracle's prices fluctuated between $111.18 and $198.31, with a yearly change of 78.37%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.