Oracle vs IBM Which Is Stronger?

Oracle and IBM are global technology giants that have been competing in the tech industry for decades. Both companies have a long history of innovation and a strong presence in the market. Oracle is known for its database software and cloud services, while IBM has a diverse portfolio of products and services, including hardware, software, and consulting. Investors often compare the two companies' stocks, looking at factors such as financial performance, market trends, and competitive positioning to make informed investment decisions.

Oracle or IBM?

When comparing Oracle and IBM, 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 IBM.

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 1.03%, while IBM has a dividend yield of 2.55%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Oracle reports a 5-year dividend growth of 11.95% year and a payout ratio of 38.04%. On the other hand, IBM reports a 5-year dividend growth of 0.74% year and a payout ratio of 102.04%.

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 Oracle P/E ratio at 37.24 and IBM's P/E ratio at 40.69. 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 31.49 while IBM's P/B ratio is 8.98.

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 0.78%, while IBM's is 0.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Oracle's ROE at 119.57% and IBM's ROE at 24.33%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $148.50 for Oracle and $245.18 for IBM. Over the past year, Oracle's prices ranged from $111.18 to $198.31, with a yearly change of 78.37%. IBM's prices fluctuated between $162.62 and $265.72, with a yearly change of 63.40%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.