Sat, Jul 26, 2014, 6:17 AM EDT - U.S. Markets closed

Recent

% | $
Click the to save as a favorite.

International Business Machines Corporation Message Board

  • topinvestgun1 topinvestgun1 Jul 3, 2013 12:54 AM Flag

    comparing Oracle vs IBM, Oracle is much cheaper?

    I like Oracle better in terms of valuation and growth. They are both around 10 forward P/E but IBM will have the restructuring charge this coming two quarters. Oracle bit IBM both on gross margin and net margin. PEG ratio, IBM is lower than Oracle as well. What do you think?

    Sentiment: Strong Buy

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Buy all the Oracle you can afford as soon as you can.

      Please yourself.

    • Isn't that like comparing eggs to apples........?

    • ORCL is a great company. It has much higher overall margins because of the larger % of software in its sales.

      In lean times, ORCL will see earnings go down faster than IBM as was the case in 2009. IBM's revenue base is moire diversified than ORCL when you consider Services and Finance - GFS.

      ORCL trades at about 3.75x its sales while IBM trades around 2x sales reflecting IBM's lower margins and slower growth.

      So I can't agree that ORCL is much cheaper. Interestingly for this year, the composite analyst estimate for ORCL operating earnings is around 8% growth while IBM's estimate is closer to 9%.

      • 1 Reply to mr_dinky_dot_bomb
      • Good point. Since we are in the recovery cycle, I guess sales in Oracle will increase further and faster. A lot of companies has money to deploy. I will wait for IBM to write off its restructuring charge first before I consider it. Thanks for the insight. I know both are dominating in the market and making money. I just don't like IBM sending jobs off shore, very personal feeling. In long term, I think it is bad for North America and depleting skills to software engineer and innovate.

        Sentiment: Strong Buy

 
IBM
194.40-0.84(-0.43%)Jul 25 4:00 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.