Reviewing Oracle (NYSE:ORCL) & ImageWare Systems (OTCMKTS:IWSY)

Oracle (NYSE:ORCL) and ImageWare Systems (OTCMKTS:IWSY) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.

Valuation and Earnings

This table compares Oracle and ImageWare Systems”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oracle	$57.40 billion	8.94	$12.44 billion	$5.57	32.04
ImageWare Systems	N/A	N/A	N/A	N/A	N/A

Oracle has higher revenue and earnings than ImageWare Systems.

Risk & Volatility

Oracle has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500. Comparatively, ImageWare Systems has a beta of 2.4, suggesting that its stock price is 140% more volatile than the S&P 500.

Insider & Institutional Ownership

42.4% of Oracle shares are owned by institutional investors. Comparatively, 2.2% of ImageWare Systems shares are owned by institutional investors. 40.9% of Oracle shares are owned by company insiders. Comparatively, 37.7% of ImageWare Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Oracle and ImageWare Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oracle	25.30%	62.70%	8.65%
ImageWare Systems	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings for Oracle and ImageWare Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oracle	1	9	27	3	2.80
ImageWare Systems	0	0	0	0	0.00

Oracle currently has a consensus target price of $260.71, indicating a potential upside of 46.11%. Given Oracle’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Oracle is more favorable than ImageWare Systems.

Summary

Oracle beats ImageWare Systems on 10 of the 11 factors compared between the two stocks.

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.

About ImageWare Systems

ImageWare Systems, Inc. operates as a biometric solution provider in the United States and internationally. It offers Imageware Biometric Engine, a biometric identity and authentication database built for multi-biometric enrollment, management, and authentication. The company also provides Imageware Proof that enables an entity to prove user identity from their biometrics, government issued ID, and credit bureau data; Imageware Capture that enables the capture of biographic and biometric details, such as face, fingerprint, palm print, and iris, as well as scars, marks, and tattoos; Imageware Identify, which enables a user to identify others from their biometrics; and Imageware Investigate that enables an officer to create digital lineups. In addition, it offers Imageware Credential that enables a user to design, build, and print badges for access control systems, which includes tickets, smart badges, wristbands, personal identity verification cards, and others; Imageware Digital ID, a decentralized identity service that enables self-sovereign identity underpinned by blockchain technology tied to biometrics; and Imageware Authenticate, which enables users to leverage multimodal biometrics hosted in a central server or cloud to log in to services and applications from a device. Further, the company provides Law Enforcement 2.0 solution which enables state, local, and federal agencies to capture, archive, search, retrieve, and share digital images, fingerprints, and other biometrics, as well as criminal history records on a stand-alone, networked, wireless or browser-based platform. It serves airports and seaports, education, financial, government, healthcare, and law enforcement industries. The company was incorporated in 1987 and is headquartered in San Diego, California.