Oracle vs Cisco Systems Which Offers More Value?

Oracle and Cisco Systems are both titans in the tech industry, each offering a unique set of products and services. Oracle is a global leader in database software and cloud solutions, while Cisco Systems specializes in networking and communication technologies. Investors looking to compare these two stocks will need to consider factors such as revenue growth, market saturation, competitive positioning, and overall industry trends in order to make an informed decision. Let's delve deeper into the financial performance and outlook for these companies to determine which may be the better investment opportunity.

Oracle or Cisco Systems?

When comparing Oracle and Cisco Systems, 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 Cisco Systems.

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 1.06%, while Cisco Systems has a dividend yield of 2.71%. 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 40.11%. On the other hand, Cisco Systems reports a 5-year dividend growth of 3.90% year and a payout ratio of 61.86%.

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 47.57 and Cisco Systems's P/E ratio at 22.83. 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 46.34 while Cisco Systems's P/B ratio is 5.18.

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 Cisco Systems's is 0.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Oracle's ROE at 146.49% and Cisco Systems's ROE at 22.60%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $187.84 for Oracle and $58.36 for Cisco Systems. Over the past year, Oracle's prices ranged from $99.26 to $191.45, with a yearly change of 92.88%. Cisco Systems's prices fluctuated between $44.50 and $59.38, with a yearly change of 33.44%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.