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

Institutional & Insider Ownership

58.6% of Oracle Corporation shares are held by institutional investors. Comparatively, 59.8% of shares of all “Enterprise Software” companies are held by institutional investors. 29.0% of Oracle Corporation shares are held by insiders. Comparatively, 23.6% of shares of all “Enterprise Software” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Oracle Corporation 25.34% 20.55% 8.36%
Oracle Corporation Competitors -24.56% -412.83% -8.08%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Oracle Corporation and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oracle Corporation 0 10 28 0 2.74
Oracle Corporation Competitors 516 2410 4056 134 2.54

Oracle Corporation presently has a consensus target price of $53.58, suggesting a potential upside of 11.70%. As a group, “Enterprise Software” companies have a potential upside of 7.20%. Given Oracle Corporation’s stronger consensus rating and higher probable upside, equities analysts plainly believe Oracle Corporation is more favorable than its rivals.

Risk and 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 rivals have a beta of 1.13, meaning that their average stock price is 13% more volatile than the S&P 500.

Earnings and Valuation

This table compares Oracle Corporation and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Oracle Corporation $37.73 billion $14.67 billion 20.95
Oracle Corporation Competitors $1.27 billion $344.85 million 34.13

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

Dividends

Oracle Corporation pays an annual dividend of $0.76 per share and has a dividend yield of 1.6%. Oracle Corporation pays out 33.2% 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 26.4% of their earnings in the form of a dividend. Oracle Corporation has raised its dividend for 5 consecutive years.

Summary

Oracle Corporation beats its rivals on 10 of the 15 factors compared.

About Oracle Corporation

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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