VMware (NYSE:VMW) and Oracle (NYSE:ORCL) are both large-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
This is a breakdown of current recommendations and price targets for VMware and Oracle, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Institutional and Insider Ownership
16.9% of VMware shares are held by institutional investors. Comparatively, 47.5% of Oracle shares are held by institutional investors. 28.5% of VMware shares are held by company insiders. Comparatively, 39.1% of Oracle shares are held by company 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.
Volatility and Risk
VMware has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Oracle has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.
This table compares VMware and Oracle’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares VMware and Oracle’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|VMware||$10.81 billion||6.23||$6.41 billion||$4.51||35.63|
|Oracle||$39.07 billion||5.80||$10.14 billion||$3.46||22.70|
Oracle has higher revenue and earnings than VMware. Oracle is trading at a lower price-to-earnings ratio than VMware, indicating that it is currently the more affordable of the two stocks.
VMware, Inc. provides software in the areas of hybrid and multi-cloud, modern applications, networking, security, and digital workspaces in the United States and internationally. It offers VMware multi-cloud solutions, including VMware vSphere, a data center infrastructure that provides the fundamental compute layer and utilizes its hypervisor software, a layer of software that resides between the operating system and system hardware to enable compute virtualization; vSAN and VxRail, which offers holistic data storage and protection options to all applications running on vSphere; and vRealize Cloud Management solutions that manages hybrid and multi-cloud environments running in virtual machines and containers, as well as VMware Cloud Foundation, a hybrid cloud platform that combines its vSphere, vSAN, and NSX with vRealize Cloud Management into an integrated stack and delivers enterprise-ready cloud infrastructure for private and public clouds. The company also provides networking solutions, such as VMware NSX, VMware Service-defined Firewall, VMware SD-WAN, VMware SASE, VMware vRealize Network Insight, and VMware NSX Advanced Load Balancer; digital workspace solutions that comprise Workspace ONE Unified Endpoint Management, Access, and Horizon; and application modernization solutions, such as Tanzu Basic, standard, and advanced edition, Tanzu Application Service, and Tanzu Labs. In addition, it offers intrinsic security solutions consisting of VMware Carbon Black Cloud Endpoint and Workload. The company sells its products through distributors, resellers, system vendors, and systems integrators. VMware, Inc. has strategic alliances with Amazon Web Services to build and deliver an integrated hybrid solution. The company was incorporated in 1998 and is headquartered in Palo Alto, California. VMware, Inc. is a subsidiary of Dell Technologies Inc.
Oracle Corporation provides 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 enterprise resource planning (ERP) cloud, Oracle enterprise and performance management cloud, Oracle supply chain management cloud, Oracle human capital management cloud, Oracle customer experience cloud, and NetSuite application suite. 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, an enterprise 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 through its Oracle cloud infrastructure as a service offerings. Further, it offers infrastructure offerings comprising Oracle autonomous data warehouse cloud service, Oracle autonomous transaction processing cloud service, Internet-of-Things, digital assistant, and Blockchain. Additionally, the company 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. 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. Oracle Corporation was founded in 1977 and is headquartered in Austin, Texas.
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