Oracle vs SAP

This page provides a comprehensive comparison between Oracle and SAP, two leading technology companies. We examine their respective business models, analyse key aspects of their financial performance, and consider their positions within the broader market context. This analysis aims to offer an accessible overview for those interested in understanding the differences and similarities between these two prominent stocks. Educational content, not financial advice.

This page provides a comprehensive comparison between Oracle and SAP, two leading technology companies. We examine their respective business models, analyse key aspects of their financial performance,...

Comparison Snapshot

Key Financial Metrics

ORCL

Metric

SAP

$472.86B

Market Cap

$254.86B

78.50%

Potential Profit

67.18%

Buy

Analyst Rating

Buy

Why It's Moving

Oracle's massive $45-50B fundraising plan for AI cloud expansion sends shares on a volatile ride.

Announced split funding—half via a $20-25B bond offering and the rest through equity issuances—to meet contracted demand from major AI players.
Shares seesawed sharply, climbing over 3% intraday before paring gains, amid broader tech sector softness and company-specific debt concerns.
Follows recent AI wins like the Life Sciences platform launch, yet highlights market unease with Oracle's leverage after a 50% drop from September peaks.

Sentiment:

🌋Volatile

SAP Stock Craters on Cloud Backlog Miss Despite Earnings Beat and Massive Buyback.

Q4 EPS surged 16% on 30% cloud bookings jump, highlighting robust AI demand, yet cloud backlog grew slower than expected, fueling doubts on momentum.
New €10 billion share repurchase through 2027 signals management confidence in cash flow, but conservative 2026 outlook for 23-25% cloud revenue growth fell short of lofty hopes.
Dismissal of three executives over stolen trade secrets adds governance clouds, amplifying the post-earnings plunge amid rising short interest.

Sentiment:

🐻Bearish

Oracle's massive $45-50B fundraising plan for AI cloud expansion sends shares on a volatile ride.

Announced split funding—half via a $20-25B bond offering and the rest through equity issuances—to meet contracted demand from major AI players.
Shares seesawed sharply, climbing over 3% intraday before paring gains, amid broader tech sector softness and company-specific debt concerns.
Follows recent AI wins like the Life Sciences platform launch, yet highlights market unease with Oracle's leverage after a 50% drop from September peaks.

Sentiment:

🌋Volatile

SAP Stock Craters on Cloud Backlog Miss Despite Earnings Beat and Massive Buyback.

Q4 EPS surged 16% on 30% cloud bookings jump, highlighting robust AI demand, yet cloud backlog grew slower than expected, fueling doubts on momentum.
New €10 billion share repurchase through 2027 signals management confidence in cash flow, but conservative 2026 outlook for 23-25% cloud revenue growth fell short of lofty hopes.
Dismissal of three executives over stolen trade secrets adds governance clouds, amplifying the post-earnings plunge amid rising short interest.

Sentiment:

🐻Bearish

Investment Analysis

Oracle

ORCL

Pros

Oracle forecasts over 70% growth in cloud segment driven by data centres and AI applications.
Oracle demonstrates superior scale with revenue of $61 billion versus SAP's $36.5 billion.
Oracle shares exhibit strong upward trend with potential to exceed $500 billion market capitalisation.

Considerations

Oracle carries substantial total debt of $124 billion compared to SAP's $9.12 billion.
Oracle's SMR rating of 100 indicates slower stock growth than SAP over last 12 months.
Oracle's profit versus risk rating stands at 48, lower than SAP's 27.

SAP

Pros

SAP appears undervalued with valuation score of 21 compared to Oracle's fair-valued 50.
SAP holds stronger outlook rating of 72 versus Oracle's 50.
SAP maintains healthy liquidity with total cash of €9.93 billion and lower debt levels.

Considerations

SAP experienced a 14-16% share price drop over past 12 months while Oracle gained 19-31%.
SAP shares approach cycle end with analysts predicting sharp correction ahead.
SAP's technical indicators show mixed signals including sell on MACD and Bollinger Bands.

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