NVIDIA vs Oracle Which Offers More Value?

NVIDIA and Oracle are two well-known technology companies that operate in different sectors of the industry. NVIDIA is a leading manufacturer of graphics processing units (GPUs) and is known for its dominance in the gaming and AI markets. On the other hand, Oracle is a multinational computer technology corporation that specializes in developing and marketing computer hardware systems and enterprise software products. Both companies have seen significant growth in their stock prices in recent years, but their market performance and growth prospects differ due to their distinct product offerings and target markets.

NVIDIA or Oracle?

When comparing NVIDIA 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 NVIDIA 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. NVIDIA has a dividend yield of 0.02%, while Oracle has a dividend yield of 0.9%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NVIDIA reports a 5-year dividend growth of -23.48% year and a payout ratio of 1.09%. 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 NVIDIA P/E ratio at 54.19 and Oracle's P/E ratio at 42.86. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NVIDIA P/B ratio is 51.86 while Oracle's P/B ratio is 35.00.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NVIDIA has seen a 5-year revenue growth of 1.68%, while Oracle's is 0.92%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NVIDIA's ROE at 116.71% and Oracle's ROE at 118.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $135.21 for NVIDIA and $174.85 for Oracle. Over the past year, NVIDIA's prices ranged from $47.32 to $152.89, with a yearly change of 223.10%. Oracle's prices fluctuated between $99.26 and $198.31, with a yearly change of 99.79%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.