OCI vs Oracle Which Outperforms?

Oracle Corporation is a global technology powerhouse known for its cloud-based services and enterprise software solutions. In recent years, the company has shifted its focus towards cloud computing and has made significant investments in its Oracle Cloud Infrastructure (OCI) platform. As a result, many investors are now comparing OCI to Oracle's traditional stock performance. While both stocks are part of the same company, they cater to different market segments and have varied growth prospects. Understanding the differences between OCI and Oracle stocks is essential for investors looking to capitalize on Oracle's evolution in the technology sector.

OCI or Oracle?

When comparing OCI 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 OCI 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. OCI has a dividend yield of 139.87%, while Oracle has a dividend yield of 0.92%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. OCI reports a 5-year dividend growth of 0.00% year and a payout ratio of -88.02%. 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 OCI P/E ratio at -10.74 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. OCI P/B ratio is 2.57 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, OCI has seen a 5-year revenue growth of -0.40%, while Oracle's is 0.92%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with OCI's ROE at -21.80% and Oracle's ROE at 118.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.21 for OCI and $171.64 for Oracle. Over the past year, OCI's prices ranged from $11.15 to $32.65, with a yearly change of 192.83%. 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.