Financial Contrast: Oracle (NYSE:ORCL) vs. Xperi (NYSE:XPER)

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

Risk and Volatility

Oracle has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500. Comparatively, Xperi has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Oracle and Xperi, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oracle	1	8	28	2	2.79
Xperi	1	1	2	0	2.25

Oracle currently has a consensus price target of $263.97, suggesting a potential upside of 76.65%. Xperi has a consensus price target of $11.00, suggesting a potential upside of 85.19%. Given Xperi’s higher probable upside, analysts clearly believe Xperi is more favorable than Oracle.

Profitability

This table compares Oracle and Xperi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oracle	25.37%	58.62%	8.36%
Xperi	-7.12%	4.04%	2.72%

Insider and Institutional Ownership

42.4% of Oracle shares are owned by institutional investors. Comparatively, 94.3% of Xperi shares are owned by institutional investors. 40.9% of Oracle shares are owned by insiders. Comparatively, 3.2% of Xperi shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oracle	$67.36 billion	6.39	$17.09 billion	$5.83	25.63
Xperi	$448.11 million	0.65	-$56.34 million	($0.70)	-8.49

Oracle has higher revenue and earnings than Xperi. Xperi is trading at a lower price-to-earnings ratio than Oracle, indicating that it is currently the more affordable of the two stocks.

Summary

Oracle beats Xperi on 13 of the 15 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 Xperi

Xperi Holding Corporation, together with its subsidiaries, operates as a consumer and entertainment product/solutions licensing company worldwide. It operates through two segments, Product, and Intellectual Property Licensing. The company invents, develops, and delivers various technologies. It licenses audio, digital radio, imaging, edge-based machine learning, and multi-channel video user experience solutions to consumer electronics customers, automotive manufacturers, or supply chain partners. The company also provides licensing to multichannel video programming distributors, OTT video service providers, consumer electronics manufacturers, social media, and other new media companies in media industry; and memory, sensors, RF component, and foundry companies in semiconductor industry. It provides its technologies under the DTS, HD Radio, IMAX Enhanced, Invensas, TiVo, and Perceive brands. The company is headquartered in San Jose, California.