Netflix vs Oracle Which Outperforms?

Netflix and Oracle are two of the most prominent companies in the technology and entertainment industries respectively. Both companies have experienced significant growth over the years and have been successful in attracting investors. However, the stocks of these two companies have been subject to comparison, with some investors favoring one over the other. While Netflix is known for its streaming services and original content, Oracle is renowned for its software and cloud computing services. This comparison of Netflix vs Oracle stocks highlights the differences in their business models, growth potential, and market performance.

Netflix or Oracle?

When comparing Netflix 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 Netflix 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. Netflix has a dividend yield of -%, while Oracle has a dividend yield of 0.83%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Netflix 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 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 Netflix P/E ratio at 51.45 and Oracle's P/E ratio at 48.22. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Netflix P/B ratio is 17.62 while Oracle's P/B ratio is 48.93.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Netflix has seen a 5-year revenue growth of 1.11%, while Oracle's is 0.92%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Netflix's ROE at 35.86% and Oracle's ROE at 148.73%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $912.71 for Netflix and $186.43 for Oracle. Over the past year, Netflix's prices ranged from $450.76 to $935.27, with a yearly change of 107.49%. Oracle's prices fluctuated between $99.26 and $196.04, with a yearly change of 97.50%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.