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

Analyst Ratings

This is a summary of current ratings and price targets for Oracle Corporation and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oracle Corporation 0 10 29 0 2.74
Oracle Corporation Competitors 342 2027 3871 107 2.59

Oracle Corporation currently has a consensus price target of $53.62, indicating a potential upside of 10.79%. As a group, “Enterprise Software” companies have a potential upside of 3.17%. Given Oracle Corporation’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Oracle Corporation is more favorable than its peers.

Risk & Volatility

Oracle Corporation has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Oracle Corporation’s peers have a beta of 1.13, indicating that their average share 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, 59.4% of shares of all “Enterprise Software” companies are owned by institutional investors. 29.0% of Oracle Corporation shares are owned by insiders. Comparatively, 23.4% of shares of all “Enterprise Software” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Oracle Corporation and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Oracle Corporation $38.32 billion $14.89 billion 21.14
Oracle Corporation Competitors $1.27 billion $348.15 million 36.48

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

Profitability

This table compares Oracle Corporation and its peers’ 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 -25.22% -211.13% -8.08%

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 increased its dividend for 5 consecutive years.

Summary

Oracle Corporation beats its peers 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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