Meta vs Oracle Which Is a Smarter Choice?

Meta Platforms, formerly known as Facebook, and Oracle Corporation are two tech giants that have seen significant growth in their stock prices in recent years. Meta's stock has been driven by its dominant position in social media, while Oracle's stock has surged due to its focus on cloud computing and data management services. Both companies have strong financials and experienced leadership, making them attractive options for investors looking to capitalize on the technology sector's continued growth.

Meta or Oracle?

When comparing Meta 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 Meta 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. Meta has a dividend yield of -%, while Oracle has a dividend yield of 0.92%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Meta 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 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 Meta P/E ratio at -2.97 and Oracle's P/E ratio at 41.61. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Meta P/B ratio is 0.20 while Oracle's P/B ratio is 33.98.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Meta has seen a 5-year revenue growth of -1.00%, while Oracle's is 0.92%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Meta's ROE at -6.21% and Oracle's ROE at 118.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿0.12 for Meta and $171.64 for Oracle. Over the past year, Meta's prices ranged from ฿0.11 to ฿0.21, with a yearly change of 90.91%. Oracle's prices fluctuated between $99.36 and $198.31, with a yearly change of 99.59%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.