Oracle vs Workday Which Performs Better?

Oracle Corporation and Workday Inc. are two major players in the software industry, with a focus on cloud-based applications and services. Oracle, a longtime powerhouse in enterprise software, has recently faced stiff competition from newer companies like Workday, which specializes in cloud-based human resources and financial management solutions. Investors are closely watching the performance of both stocks as they navigate the increasingly competitive landscape of the tech sector. Let's take a closer look at the key factors influencing the market dynamics of Oracle vs Workday stocks.

Oracle or Workday?

When comparing Oracle and Workday, 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 Workday.

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 Workday 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, Workday 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 Workday's P/E ratio at 45.47. 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 Workday's P/B ratio is 8.40.

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 Workday's is 1.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Oracle's ROE at 146.49% and Workday's ROE at 19.75%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $187.84 for Oracle and $255.01 for Workday. Over the past year, Oracle's prices ranged from $99.26 to $191.45, with a yearly change of 92.88%. Workday's prices fluctuated between $199.81 and $311.28, with a yearly change of 55.79%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.