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?
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.