Intuit vs Oracle

Intuit and Oracle are two of the leading companies in the technology sector that have garnered significant attention from investors in recent years. Intuit, known for its popular financial and accounting software products like QuickBooks, has shown steady growth and strong financial performance. On the other hand, Oracle, a multinational computer technology corporation, offers a wide range of products and services related to database management, cloud computing, and enterprise software solutions. Both companies have attracted investor interest due to their innovative products and solid market positions. Let's delve into a comparison of their stocks to analyze which might be a better investment option.

Intuit or Oracle?

When comparing Intuit 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 Intuit 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. Intuit has a dividend yield of 0.77%, while Oracle has a dividend yield of 1.15%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Intuit reports a 5-year dividend growth of 14.59% year and a payout ratio of 34.90%. 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 Intuit P/E ratio at 58.39 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. Intuit P/B ratio is 9.38 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, Intuit has seen a 5-year revenue growth of 1.19%, while Oracle's is 0.92%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Intuit's ROE at 16.67% and Oracle's ROE at 146.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $615.76 for Intuit and $173.75 for Oracle. Over the past year, Intuit's prices ranged from $473.56 to $676.62, with a yearly change of 42.88%. 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.