Oracle vs Sonos Which Is More Profitable?

Oracle and Sonos are two tech companies that have been performing well in the stock market. Oracle, a multinational computer technology corporation, has a solid track record of delivering strong financial results and consistent revenue growth. On the other hand, Sonos, a consumer electronics company specializing in audio products, has seen a surge in demand for its smart speakers and home audio systems. Both companies are facing increasing competition in their respective markets, making their stock performance a topic of interest for investors.

Oracle or Sonos?

When comparing Oracle and Sonos, 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 Sonos.

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 Sonos 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, Sonos 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 42.86 and Sonos's P/E ratio at -46.33. 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 35.00 while Sonos's P/B ratio is 4.12.

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 Sonos's is -0.25%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Oracle's ROE at 118.08% and Sonos's ROE at -7.70%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $174.85 for Oracle and $14.27 for Sonos. Over the past year, Oracle's prices ranged from $99.26 to $198.31, with a yearly change of 99.79%. Sonos's prices fluctuated between $10.23 and $19.76, with a yearly change of 93.16%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.