ServiceNow vs Oracle Which Should You Buy?

ServiceNow and Oracle are two leading companies in the enterprise software industry, both offering a wide range of solutions for businesses. ServiceNow specializes in cloud-based services for IT service management, employee workflows, and customer service. On the other hand, Oracle provides a comprehensive suite of software and hardware products for database management, enterprise resource planning, and cloud applications. Investors often compare the two companies' stocks, considering factors such as revenue growth, market share, and overall financial performance.

ServiceNow or Oracle?

When comparing ServiceNow 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 ServiceNow 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. ServiceNow has a dividend yield of -%, while Oracle has a dividend yield of 1.06%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ServiceNow reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Oracle reports a 5-year dividend growth of 14.87% year and a payout ratio of 40.11%.

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 ServiceNow P/E ratio at 159.87 and Oracle's P/E ratio at 47.57. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ServiceNow P/B ratio is 22.99 while Oracle's P/B ratio is 46.34.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ServiceNow has seen a 5-year revenue growth of 2.00%, while Oracle's is 0.92%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ServiceNow's ROE at 15.86% and Oracle's ROE at 146.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $1013.00 for ServiceNow and $187.84 for Oracle. Over the past year, ServiceNow's prices ranged from $632.25 to $1038.00, with a yearly change of 64.18%. Oracle's prices fluctuated between $99.26 and $191.45, with a yearly change of 92.88%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.