Oracle Corporation (NYSE: ORCL) is one of 97 public companies in the “Enterprise Software” industry, but how does it compare to its competitors? We will compare Oracle Corporation to similar companies based on the strength of its risk, dividends, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Risk & Volatility

Oracle Corporation has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Oracle Corporation’s competitors have a beta of 1.13, meaning that their average stock price is 13% more volatile than the S&P 500.

Insider & Institutional Ownership

58.7% of Oracle Corporation shares are owned by institutional investors. Comparatively, 59.9% of shares of all “Enterprise Software” companies are owned by institutional investors. 29.0% of Oracle Corporation shares are owned by company insiders. Comparatively, 23.6% of shares of all “Enterprise Software” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Oracle Corporation and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oracle Corporation 0 10 29 0 2.74
Oracle Corporation Competitors 512 2396 4029 134 2.54

Oracle Corporation presently has a consensus price target of $51.98, suggesting a potential downside of 1.67%. As a group, “Enterprise Software” companies have a potential upside of 7.23%. Given Oracle Corporation’s competitors higher possible upside, analysts clearly believe Oracle Corporation has less favorable growth aspects than its competitors.

Dividends

Oracle Corporation pays an annual dividend of $0.76 per share and has a dividend yield of 1.4%. Oracle Corporation pays out 34.5% of its earnings in the form of a dividend. As a group, “Enterprise Software” companies pay a dividend yield of 0.8% and pay out 26.5% of their earnings in the form of a dividend. Oracle Corporation has raised its dividend for 5 consecutive years.

Earnings & Valuation

This table compares Oracle Corporation and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Oracle Corporation $37.73 billion $14.67 billion 24.03
Oracle Corporation Competitors $1.27 billion $344.87 million 33.36

Oracle Corporation has higher revenue and earnings than its competitors. Oracle Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Oracle Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oracle Corporation 24.74% 20.90% 8.32%
Oracle Corporation Competitors -24.57% -412.83% -8.08%

Summary

Oracle Corporation beats its competitors on 9 of the 15 factors compared.

Oracle Corporation Company Profile

Oracle Corporation (Oracle) provides products and services that address all aspects of corporate information technology (IT) environments, including application, platform and infrastructure. The Company’s businesses include cloud and on-premise software, hardware and services. Its cloud and on-premise software business consists of three segments, including cloud software and on-premise software, which includes Software as a Service (SaaS) and Platform as a Service (PaaS) offerings, cloud infrastructure as a service (IaaS) and software license updates and product support. Its hardware business consists of two segments, including hardware products and hardware support. The Company’s services business includes the remainder of the Company’s segments. Its services business includes activities, such as consulting services, enhanced support services and education services, among others.

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