Oracle vs WPP Which Is More Lucrative?

Oracle Corporation and WPP plc are two well-known companies in the technology and advertising industries, respectively. Oracle is a leading provider of cloud-based software and services, while WPP is one of the world's largest advertising and marketing companies. Both companies are publicly traded on major stock exchanges and have faced fluctuations in their stock prices due to various market conditions and company performance. Investors closely monitor the performance of Oracle and WPP stocks to make informed decisions about their investments in these companies.

Oracle or WPP?

When comparing Oracle and WPP, 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 WPP.

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 WPP has a dividend yield of 3.57%. 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, WPP reports a 5-year dividend growth of -9.86% year and a payout ratio of 313.03%.

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 WPP's P/E ratio at 227.33. 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 46.34 while WPP's P/B ratio is 13.17.

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 WPP's is -0.78%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Oracle's ROE at 146.49% and WPP's ROE at 5.90%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $187.84 for Oracle and $54.32 for WPP. Over the past year, Oracle's prices ranged from $99.26 to $191.45, with a yearly change of 92.88%. WPP's prices fluctuated between $42.49 and $55.74, with a yearly change of 31.18%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.