Oracle (NYSE:ORCL) and The Ultimate Software Group (NASDAQ:ULTI) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Oracle pays an annual dividend of $0.76 per share and has a dividend yield of 1.6%. The Ultimate Software Group does not pay a dividend. Oracle pays out 27.0% of its earnings in the form of a dividend. Oracle has raised its dividend for 6 consecutive years.
Risk and Volatility
Oracle has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, The Ultimate Software Group has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.
Insider & Institutional Ownership
51.0% of Oracle shares are held by institutional investors. Comparatively, 97.0% of The Ultimate Software Group shares are held by institutional investors. 32.0% of Oracle shares are held by insiders. Comparatively, 3.0% of The Ultimate Software Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Oracle and The Ultimate Software Group’s top-line revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
|The Ultimate Software Group
Oracle has higher revenue and earnings than The Ultimate Software Group. Oracle is trading at a lower price-to-earnings ratio than The Ultimate Software Group, indicating that it is currently the more affordable of the two stocks.
This table compares Oracle and The Ultimate Software Group’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
|The Ultimate Software Group
This is a breakdown of current recommendations for Oracle and The Ultimate Software Group, as provided by MarketBeat.com.
||Strong Buy Ratings
|The Ultimate Software Group
Oracle presently has a consensus price target of $53.86, suggesting a potential upside of 15.37%. The Ultimate Software Group has a consensus price target of $298.60, suggesting a potential upside of 15.65%. Given The Ultimate Software Group’s stronger consensus rating and higher possible upside, analysts clearly believe The Ultimate Software Group is more favorable than Oracle.
Oracle beats The Ultimate Software Group on 10 of the 17 factors compared between the two stocks.
Oracle Company Profile
Oracle Corporation develops, manufactures, markets, sells, hosts, and supports application, platform, and infrastructure solutions for information technology (IT) environments worldwide. The company provides services in three primary layers of the cloud: Software as a Service, Platform as a Service, and Infrastructure as a Service. It offers human capital and talent management, enterprise resource planning, customer experience and relationship management, procurement, supply chain management, project portfolio management, business analytics and enterprise performance management, and industry-specific application software, as well as financial management and governance, and risk and compliance applications. The company also licenses its Oracle Database for storage, retrieval, and manipulation of data; and Oracle Fusion Middleware software to build, deploy, secure, access, extend, and integrate business applications, as well as automate business processes. In addition, it provides a range of development tools, identity management, and business analytics software solutions for mobile computing development to address the development needs of businesses; Java, a software development language; and big data solutions. Further, the company provides Oracle Engineered Systems, servers, storage, industry-specific hardware, and hardware support products, as well as operating systems, virtualization, management, and other hardware-related software. Additionally, it provides consulting services, including IT strategy alignment, enterprise architecture planning and design, initial software implementation and integration, application development and integration, security assessments, and ongoing software enhancements and upgrade services; and customer support and education services. The company serves businesses, government agencies, educational institutions, and resellers. Oracle Corporation was founded in 1977 and is headquartered in Redwood City, California.
The Ultimate Software Group Company Profile
The Ultimate Software Group, Inc. provides cloud-based human capital management solutions primarily to enterprise companies in the United States and Canada. The company's UltiPro software solution delivers the functionality businesses to manage the employee life cycle from recruitment to retirement. Its UltiPro solution includes unified feature sets for talent acquisition and onboarding, human resources (HR) management and compliance, benefits management and online enrollment, payroll, performance management, employee engagement surveying, compensation management with salary planning, budgeting, incentive award planning, succession management, learning management, reporting and analytical decision-making and predictive tools, and time capture, scheduling, attendance tracking, and absence accruals; and has role-based features for HR professionals, executives, managers, administrators, and employees. The company's UltiPro software solution is delivered through software-as-a-service. It also provides professional services, and customer support and product maintenance services. The company serves customers in various industries, including manufacturing, food services, sports, technology, finance, insurance, retail, real estate, transportation, communications, healthcare, and other services. The Ultimate Software Group, Inc. was founded in 1990 and is headquartered in Weston, Florida.
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