Sun vs Oracle Which Performs Better?

Sun Microsystems and Oracle Corporation are both technology giants in the industry, known for their innovative products and services. Sun Microsystems was founded in 1982 and became a leading provider of computer hardware, software, and services. On the other hand, Oracle Corporation, established in 1977, specializes in developing and marketing database software and technology. Both companies have experienced fluctuations in their stock prices over the years, making them key players to watch in the tech sector.

Sun or Oracle?

When comparing Sun 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 Sun 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. Sun has a dividend yield of 1.15%, while Oracle has a dividend yield of 1.07%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Sun 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 Sun P/E ratio at -228.92 and Oracle's P/E ratio at 47.05. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Sun P/B ratio is 4.60 while Oracle's P/B ratio is 47.75.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Sun has seen a 5-year revenue growth of -0.60%, while Oracle's is 0.92%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Sun's ROE at -2.13% and Oracle's ROE at 148.73%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥7480.00 for Sun and $186.71 for Oracle. Over the past year, Sun's prices ranged from ¥2035.00 to ¥8390.00, with a yearly change of 312.29%. Oracle's prices fluctuated between $99.26 and $191.77, with a yearly change of 93.20%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.