Oracle vs Dell Technologies Which Is More Profitable?

Oracle and Dell Technologies are two giants in the technology industry, both known for their innovative products and strong financial performance. However, their stocks have experienced different trajectories in recent years. While Dell Technologies has seen steady growth with its diverse portfolio of hardware, software, and services, Oracle has faced challenges in adapting to the rapidly changing technology landscape. Investors are closely monitoring these two companies as they navigate through market uncertainties and strive to remain competitive in the ever-evolving tech industry.

Oracle or Dell Technologies?

When comparing Oracle and Dell Technologies, 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 Dell Technologies.

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 0.92%, while Dell Technologies has a dividend yield of 1.44%. 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, Dell Technologies reports a 5-year dividend growth of 0.00% year and a payout ratio of 29.93%.

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 41.61 and Dell Technologies's P/E ratio at 20.49. 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 33.98 while Dell Technologies's P/B ratio is -36.70.

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 Dell Technologies's is 0.36%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Oracle's ROE at 118.08% and Dell Technologies's ROE at -157.35%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $171.64 for Oracle and $116.52 for Dell Technologies. Over the past year, Oracle's prices ranged from $99.36 to $198.31, with a yearly change of 99.59%. Dell Technologies's prices fluctuated between $71.05 and $179.70, with a yearly change of 152.92%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.