Contrasting Oracle (NYSE:ORCL) & Xperi (NYSE:XPER)

Xperi (NYSE:XPER) and Oracle (NYSE:ORCL) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.

Analyst Ratings

This is a summary of current ratings for Xperi and Oracle, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xperi	1	1	2	0	2.25
Oracle	1	8	28	2	2.79

Xperi currently has a consensus price target of $11.00, suggesting a potential upside of 85.19%. Oracle has a consensus price target of $263.97, suggesting a potential upside of 76.65%. Given Xperi’s higher possible upside, equities research analysts plainly believe Xperi is more favorable than Oracle.

Insider & Institutional Ownership

94.3% of Xperi shares are owned by institutional investors. Comparatively, 42.4% of Oracle shares are owned by institutional investors. 3.2% of Xperi shares are owned by insiders. Comparatively, 40.9% of Oracle shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Xperi and Oracle”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xperi	$448.11 million	0.65	-$56.34 million	($0.70)	-8.49
Oracle	$67.36 billion	6.39	$17.09 billion	$5.83	25.63

Oracle has higher revenue and earnings than Xperi. Xperi is trading at a lower price-to-earnings ratio than Oracle, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Xperi and Oracle’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xperi	-7.12%	4.04%	2.72%
Oracle	25.37%	58.62%	8.36%

Volatility and Risk

Xperi has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Oracle has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500.

Summary

Oracle beats Xperi on 13 of the 15 factors compared between the two stocks.

About Xperi

Xperi Holding Corporation, together with its subsidiaries, operates as a consumer and entertainment product/solutions licensing company worldwide. It operates through two segments, Product, and Intellectual Property Licensing. The company invents, develops, and delivers various technologies. It licenses audio, digital radio, imaging, edge-based machine learning, and multi-channel video user experience solutions to consumer electronics customers, automotive manufacturers, or supply chain partners. The company also provides licensing to multichannel video programming distributors, OTT video service providers, consumer electronics manufacturers, social media, and other new media companies in media industry; and memory, sensors, RF component, and foundry companies in semiconductor industry. It provides its technologies under the DTS, HD Radio, IMAX Enhanced, Invensas, TiVo, and Perceive brands. The company is headquartered in San Jose, California.

About Oracle

Oracle Corporation offers products and services that address enterprise information technology environments worldwide. Its Oracle cloud software as a service offering include various cloud software applications, including Oracle Fusion cloud enterprise resource planning (ERP), Oracle Fusion cloud enterprise performance management, Oracle Fusion cloud supply chain and manufacturing management, Oracle Fusion cloud human capital management, Oracle Cerner healthcare, Oracle Advertising, and NetSuite applications suite, as well as Oracle Fusion Sales, Service, and Marketing. The company also offers cloud-based industry solutions for various industries; Oracle application licenses; and Oracle license support services. In addition, it provides cloud and license business' infrastructure technologies, such as the Oracle Database and MySQL Database; Java, a software development language; and middleware, including development tools and others. The company's cloud and license business' infrastructure technologies also comprise cloud-based compute, storage, and networking capabilities; and Oracle autonomous database, MySQL HeatWave, Internet-of-Things, digital assistant, and blockchain. Further, it provides hardware products and other hardware-related software offerings, including Oracle engineered systems, enterprise servers, storage solutions, industry-specific hardware, virtualization software, operating systems, management software, and related hardware services; and consulting and customer services. The company markets and sells its cloud, license, hardware, support, and services offerings directly to businesses in various industries, government agencies, and educational institutions, as well as through indirect channels. The company has a collaboration with Amdocs Limited to empower customers on their journey towards cloud and digital adoption. Oracle Corporation was founded in 1977 and is headquartered in Austin, Texas.