Salesforce vs Oracle Which Is Stronger?

Salesforce and Oracle are two titans in the tech industry, both offering cloud-based solutions for businesses worldwide. As leaders in the CRM market, their stocks are closely watched by investors seeking to capitalize on the ever-growing demand for digital solutions. While Salesforce has seen impressive growth in recent years, Oracle continues to be a dominant player with a long-standing reputation in the industry. Understanding the differences between these two stocks is crucial for investors looking to make informed decisions in the tech sector.

Salesforce or Oracle?

When comparing Salesforce and Oracle, 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 Salesforce and Oracle.

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. Salesforce has a dividend yield of 0.34%, while Oracle has a dividend yield of 0.91%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Salesforce reports a 5-year dividend growth of 0.00% year and a payout ratio of 14.69%. On the other hand, Oracle reports a 5-year dividend growth of 14.87% year and a payout ratio of 38.04%.

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 Salesforce P/E ratio at 43.88 and Oracle's P/E ratio at 42.08. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Salesforce P/B ratio is 5.89 while Oracle's P/B ratio is 34.36.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Salesforce has seen a 5-year revenue growth of 1.16%, while Oracle's is 0.92%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Salesforce's ROE at 13.35% and Oracle's ROE at 118.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $352.98 for Salesforce and $174.82 for Oracle. Over the past year, Salesforce's prices ranged from $212.00 to $369.00, with a yearly change of 74.06%. Oracle's prices fluctuated between $99.36 and $198.31, with a yearly change of 99.59%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.