Tata Communications vs Oracle Which Is More Lucrative?

Tata Communications and Oracle are two prominent players in the technology sector, each offering different services and solutions to their clients. Tata Communications, a global digital infrastructure provider, has seen steady growth in its stock price over the years. On the other hand, Oracle, a multinational computer technology corporation, has also experienced fluctuations in its stock value due to various market factors. Both companies have a strong presence in the industry and are closely watched by investors for their performance and future prospects.

Tata Communications or Oracle?

When comparing Tata Communications 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 Tata Communications 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. Tata Communications has a dividend yield of 0.94%, while Oracle has a dividend yield of 1.06%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Tata Communications reports a 5-year dividend growth of 36.08% 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 Tata Communications P/E ratio at 54.43 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. Tata Communications P/B ratio is 28.35 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, Tata Communications has seen a 5-year revenue growth of 0.27%, while Oracle's is 0.92%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Tata Communications's ROE at 54.39% and Oracle's ROE at 146.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹1750.70 for Tata Communications and $187.84 for Oracle. Over the past year, Tata Communications's prices ranged from ₹1585.55 to ₹2175.00, with a yearly change of 37.18%. 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.