Oracle vs Adobe Which Performs Better?

Oracle and Adobe are two prominent companies in the tech industry with widely different focuses. Oracle is known for its database software and cloud solutions, while Adobe is renowned for its creative software suite like Photoshop and Illustrator. Both companies have experienced steady growth in their stock prices over the years, but Oracle's stock is often seen as a more stable investment compared to Adobe's more volatile stock. Investors looking for a reliable investment may lean towards Oracle, while those seeking higher returns may be drawn to Adobe.

Oracle or Adobe?

When comparing Oracle and Adobe, 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 Oracle and Adobe.

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. Oracle has a dividend yield of 0.9%, while Adobe has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Oracle reports a 5-year dividend growth of 14.87% year and a payout ratio of 38.04%. On the other hand, Adobe 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 Oracle P/E ratio at 42.43 and Adobe's P/E ratio at 45.42. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Oracle P/B ratio is 34.65 while Adobe's P/B ratio is 16.74.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Oracle has seen a 5-year revenue growth of 0.92%, while Adobe's is 1.31%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Oracle's ROE at 118.08% and Adobe's ROE at 34.94%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $171.06 for Oracle and $544.22 for Adobe. Over the past year, Oracle's prices ranged from $99.26 to $198.31, with a yearly change of 99.79%. Adobe's prices fluctuated between $433.97 and $638.25, with a yearly change of 47.07%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.