Oracle vs Microsoft

Oracle and Microsoft are two tech giants that have been competing in the software and cloud computing industry for decades. Both companies offer a wide range of products and services, including databases, enterprise applications, and cloud solutions. However, their stocks have performed quite differently in recent years. While Microsoft has seen steady growth and success, Oracle has faced challenges and struggles. In this comparison, we will explore the factors that have influenced the performance of Oracle and Microsoft stocks in the market.

Oracle

Microsoft

Stock Price
Day Low$173.75
Day High$178.22
Year Low$99.26
Year High$178.61
Yearly Change79.94%
Revenue
Revenue Per Share$19.49
5 Year Revenue Growth0.92%
10 Year Revenue Growth1.41%
Profit
Gross Profit Margin0.70%
Operating Profit Margin0.30%
Net Profit Margin0.20%
Stock Price
Day Low$415.26
Day High$422.48
Year Low$324.39
Year High$468.35
Yearly Change44.38%
Revenue
Revenue Per Share$32.98
5 Year Revenue Growth0.99%
10 Year Revenue Growth2.06%
Profit
Gross Profit Margin0.70%
Operating Profit Margin0.45%
Net Profit Margin0.36%

Oracle

Microsoft

Financial Ratios
P/E ratio43.79
PEG ratio-15.86
P/B ratio42.65
ROE146.49%
Payout ratio40.11%
Current ratio0.72
Quick ratio0.72
Cash ratio0.33
Dividend
Dividend Yield1.15%
5 Year Dividend Yield14.87%
10 Year Dividend Yield20.27%
Oracle Dividend History
Financial Ratios
P/E ratio35.31
PEG ratio8.65
P/B ratio11.59
ROE35.95%
Payout ratio24.70%
Current ratio1.27
Quick ratio1.27
Cash ratio0.15
Dividend
Dividend Yield0.72%
5 Year Dividend Yield10.16%
10 Year Dividend Yield11.14%
Microsoft Dividend History

Oracle or Microsoft?

When comparing Oracle and Microsoft, 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 Microsoft.

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 1.15%, while Microsoft has a dividend yield of 0.72%. 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, Microsoft reports a 5-year dividend growth of 10.16% year and a payout ratio of 24.70%.

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 43.79 and Microsoft's P/E ratio at 35.31. 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 42.65 while Microsoft's P/B ratio is 11.59.

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 Microsoft's is 0.99%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Oracle's ROE at 146.49% and Microsoft's ROE at 35.95%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $173.75 for Oracle and $415.26 for Microsoft. Over the past year, Oracle's prices ranged from $99.26 to $178.61, with a yearly change of 79.94%. Microsoft's prices fluctuated between $324.39 and $468.35, with a yearly change of 44.38%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.

Comparision