Oracle vs Teradata Which Is a Smarter Choice?

Oracle and Teradata are two leading technology companies in the database management industry. Both companies offer a wide range of products and services aimed at helping businesses manage their data more effectively. When comparing their stocks, Oracle's stock has shown consistent growth over the years, thanks to its diverse product offerings and strong customer base. On the other hand, Teradata has faced challenges in recent years, resulting in fluctuations in its stock prices. Investors are closely monitoring the performance of both companies to determine the best investment opportunities in the database management sector.

Oracle or Teradata?

When comparing Oracle and Teradata, 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 Teradata.

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 1.06%, while Teradata 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 40.11%. On the other hand, Teradata 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 47.57 and Teradata's P/E ratio at 34.91. 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 46.34 while Teradata's P/B ratio is 22.90.

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 Teradata's is 0.01%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Oracle's ROE at 146.49% and Teradata's ROE at 84.54%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $187.84 for Oracle and $29.25 for Teradata. Over the past year, Oracle's prices ranged from $99.26 to $191.45, with a yearly change of 92.88%. Teradata's prices fluctuated between $24.02 and $49.44, with a yearly change of 105.83%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.