Microsoft vs Okta Which Is Superior?

Microsoft and Okta are two leading companies in the technology sector with a significant presence in the market. Microsoft, a giant in the industry, offers a wide range of products and services, including cloud computing and software solutions. On the other hand, Okta specializes in identity and access management software. Both companies have shown strong growth in recent years, attracting the attention of investors. This comparison will analyze the performance of Microsoft and Okta stocks to determine which may be a better investment option.

Microsoft or Okta?

When comparing Microsoft and Okta, 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 Microsoft and Okta.

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. Microsoft has a dividend yield of 0.69%, while Okta has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Microsoft reports a 5-year dividend growth of 10.16% year and a payout ratio of 24.63%. On the other hand, Okta reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Microsoft P/E ratio at 36.73 and Okta's P/E ratio at -357.85. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Microsoft P/B ratio is 11.55 while Okta's P/B ratio is 2.23.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Microsoft has seen a 5-year revenue growth of 0.99%, while Okta's is 2.75%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Microsoft's ROE at 34.56% and Okta's ROE at -0.64%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $445.58 for Microsoft and $81.94 for Okta. Over the past year, Microsoft's prices ranged from $366.28 to $468.35, with a yearly change of 27.87%. Okta's prices fluctuated between $70.56 and $114.50, with a yearly change of 62.27%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.