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

$524.17B

Market Cap

$291.95B

63.12%

Potential Profit

49.22%

Buy

Analyst Rating

Buy

Why It's Moving

Oracle's Stock Surges on Stellar Q2 Earnings, Crushing Expectations with Massive Backlog Growth

Remaining performance obligations exploded 438% to $523 billion, highlighting locked-in future revenue from high-demand cloud deals.
GAAP earnings per share rocketed 91% to $2.10, with non-GAAP EPS also posting strong gains, reflecting operational efficiency and AI tailwinds.
Stock rebounded 2.47% to $178.18 after recent dips, as investors focus on growth trajectory over valuation concerns pegging it as overvalued.

Sentiment:

🐃Bullish

SAP stock stabilizes near 52-week lows amid analyst optimism signaling major upside potential.

Analysts project a 49% upside to $336 average target, fueled by 7.2% revenue growth and $7B+ free cash flow highlighting operational strength.
Short interest plunged 18.9% in December to just 0.1% of shares, easing bearish pressure and signaling reduced pessimism.
RSI nears overbought at 69 while trading below key moving averages, hinting at possible near-term pullback before rebound on solid ROE of 17%.

Sentiment:

🐃Bullish

Oracle's Stock Surges on Stellar Q2 Earnings, Crushing Expectations with Massive Backlog Growth

Remaining performance obligations exploded 438% to $523 billion, highlighting locked-in future revenue from high-demand cloud deals.
GAAP earnings per share rocketed 91% to $2.10, with non-GAAP EPS also posting strong gains, reflecting operational efficiency and AI tailwinds.
Stock rebounded 2.47% to $178.18 after recent dips, as investors focus on growth trajectory over valuation concerns pegging it as overvalued.

Sentiment:

🐃Bullish

SAP stock stabilizes near 52-week lows amid analyst optimism signaling major upside potential.

Analysts project a 49% upside to $336 average target, fueled by 7.2% revenue growth and $7B+ free cash flow highlighting operational strength.
Short interest plunged 18.9% in December to just 0.1% of shares, easing bearish pressure and signaling reduced pessimism.
RSI nears overbought at 69 while trading below key moving averages, hinting at possible near-term pullback before rebound on solid ROE of 17%.

Sentiment:

🐃Bullish

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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