Oracle vs Tata Communications

Oracle and Tata Communications are two giant companies in the technology sector with significant influence in the stock market. Oracle, a major player in the software industry, is known for its cutting-edge database management systems and cloud solutions. On the other hand, Tata Communications, a leading global digital infrastructure provider, offers a wide range of services including network solutions and data center services. Both companies have shown resilience in the stock market, attracting investors with their strong financial performance and innovative technologies.

Oracle or Tata Communications?

When comparing Oracle and Tata Communications, 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 Tata Communications.

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 Tata Communications has a dividend yield of 0.86%. 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, Tata Communications reports a 5-year dividend growth of 36.08% 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 43.79 and Tata Communications's P/E ratio at 59.86. 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 Tata Communications's P/B ratio is 30.74.

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 Tata Communications's is 0.27%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Oracle's ROE at 146.49% and Tata Communications's ROE at 56.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $173.75 for Oracle and ₹1910.20 for Tata Communications. Over the past year, Oracle's prices ranged from $99.26 to $178.61, with a yearly change of 79.94%. Tata Communications's prices fluctuated between ₹1543.40 and ₹2175.00, with a yearly change of 40.92%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.