Microsoft vs Oracle

Microsoft and Oracle are two of the biggest players in the technology industry, both known for their innovative products and strong financial performance. Investors are constantly comparing the two stocks, trying to determine which one is the better investment. Microsoft, with its focus on cloud computing and software, has seen steady growth in recent years, while Oracle, known for its database software, has also shown resilience in the market. Both companies have loyal customer bases and a strong track record of profitability, making them attractive options for investors looking to capitalize on the tech sector.

Microsoft

Oracle

Stock Price
Day Low$415.26
Day High$422.48
Year Low$324.39
Year High$468.35
Yearly Change44.38%
Revenue
Revenue Per Share$32.98
5 Year Revenue Growth0.99%
10 Year Revenue Growth2.06%
Profit
Gross Profit Margin0.70%
Operating Profit Margin0.45%
Net Profit Margin0.36%
Stock Price
Day Low$173.75
Day High$178.22
Year Low$99.26
Year High$178.61
Yearly Change79.94%
Revenue
Revenue Per Share$19.49
5 Year Revenue Growth0.92%
10 Year Revenue Growth1.41%
Profit
Gross Profit Margin0.70%
Operating Profit Margin0.30%
Net Profit Margin0.20%

Microsoft

Oracle

Financial Ratios
P/E ratio35.31
PEG ratio8.65
P/B ratio11.59
ROE35.95%
Payout ratio24.70%
Current ratio1.27
Quick ratio1.27
Cash ratio0.15
Dividend
Dividend Yield0.72%
5 Year Dividend Yield10.16%
10 Year Dividend Yield11.14%
Microsoft Dividend History
Financial Ratios
P/E ratio43.79
PEG ratio-15.86
P/B ratio42.65
ROE146.49%
Payout ratio40.11%
Current ratio0.72
Quick ratio0.72
Cash ratio0.33
Dividend
Dividend Yield1.15%
5 Year Dividend Yield14.87%
10 Year Dividend Yield20.27%
Oracle Dividend History

Microsoft or Oracle?

When comparing Microsoft 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 Microsoft 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. Microsoft has a dividend yield of 0.72%, while Oracle has a dividend yield of 1.15%. 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 24.70%. 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 Microsoft P/E ratio at 35.31 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. Microsoft P/B ratio is 11.59 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, Microsoft has seen a 5-year revenue growth of 0.99%, while Oracle's is 0.92%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Microsoft's ROE at 35.95% and Oracle's ROE at 146.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $415.26 for Microsoft and $173.75 for Oracle. Over the past year, Microsoft's prices ranged from $324.39 to $468.35, with a yearly change of 44.38%. 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.

Comparision