Oracle (ORCL) and The Ultimate Software Group (ULTI) Head-To-Head Analysis

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Oracle (NYSE:ORCL) and The Ultimate Software Group (NASDAQ:ULTI) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, dividends, risk, profitability and institutional ownership.

Insider & Institutional Ownership

51.0% of Oracle shares are held by institutional investors. Comparatively, 98.6% of The Ultimate Software Group shares are held by institutional investors. 32.0% of Oracle shares are held by company insiders. Comparatively, 3.0% of The Ultimate Software Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Oracle pays an annual dividend of $0.76 per share and has a dividend yield of 1.6%. The Ultimate Software Group does not pay a dividend. Oracle pays out 27.0% of its earnings in the form of a dividend. Oracle has increased its dividend for 6 consecutive years.

Volatility and Risk

Oracle has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, The Ultimate Software Group has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.

Profitability

This table compares Oracle and The Ultimate Software Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oracle 9.74% 25.60% 8.93%
The Ultimate Software Group 4.57% 8.17% 2.94%

Analyst Recommendations

This is a breakdown of recent ratings for Oracle and The Ultimate Software Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oracle 0 14 15 0 2.52
The Ultimate Software Group 1 6 12 0 2.58

Oracle presently has a consensus target price of $53.86, indicating a potential upside of 10.45%. The Ultimate Software Group has a consensus target price of $298.60, indicating a potential upside of 13.14%. Given The Ultimate Software Group’s stronger consensus rating and higher possible upside, analysts clearly believe The Ultimate Software Group is more favorable than Oracle.

Valuation and Earnings

This table compares Oracle and The Ultimate Software Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oracle $39.83 billion 5.07 $3.83 billion $2.82 17.29
The Ultimate Software Group $940.73 million 8.77 $14.05 million $0.81 325.83

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

Summary

Oracle beats The Ultimate Software Group on 10 of the 17 factors compared between the two stocks.

Oracle Company Profile

Oracle Corporation develops, manufactures, markets, sells, hosts, and supports application, platform, and infrastructure solutions for information technology (IT) environments worldwide. The company provides services in three primary layers of the cloud: Software as a Service, Platform as a Service, and Infrastructure as a Service. It offers human capital and talent management, enterprise resource planning, customer experience and relationship management, procurement, supply chain management, project portfolio management, business analytics and enterprise performance management, and industry-specific application software, as well as financial management and governance, and risk and compliance applications. The company also licenses its Oracle Database for storage, retrieval, and manipulation of data; and Oracle Fusion Middleware software to build, deploy, secure, access, extend, and integrate business applications, as well as automate business processes. In addition, it provides a range of development tools, identity management, and business analytics software solutions for mobile computing development to address the development needs of businesses; Java, a software development language; and big data solutions. Further, the company provides Oracle Engineered Systems, servers, storage, industry-specific hardware, and hardware support products, as well as operating systems, virtualization, management, and other hardware-related software. Additionally, it provides consulting services, including IT strategy alignment, enterprise architecture planning and design, initial software implementation and integration, application development and integration, security assessments, and ongoing software enhancements and upgrade services; and customer support and education services. The company serves businesses, government agencies, educational institutions, and resellers. Oracle Corporation was founded in 1977 and is headquartered in Redwood City, California.

The Ultimate Software Group Company Profile

The Ultimate Software Group, Inc. provides cloud-based human capital management solutions primarily to enterprise companies in the United States and Canada. The company’s UltiPro software solution delivers the functionality businesses to manage the employee life cycle from recruitment to retirement. Its UltiPro solution includes unified feature sets for talent acquisition and onboarding, human resources (HR) management and compliance, benefits management and online enrollment, payroll, performance management, employee engagement surveying, compensation management with salary planning, budgeting, incentive award planning, succession management, learning management, reporting and analytical decision-making and predictive tools, and time capture, scheduling, attendance tracking, and absence accruals; and has role-based features for HR professionals, executives, managers, administrators, and employees. The company’s UltiPro software solution is delivered through software-as-a-service. It also provides professional services, and customer support and product maintenance services. The company serves customers in various industries, including manufacturing, food services, sports, technology, finance, insurance, retail, real estate, transportation, communications, healthcare, and other services. The Ultimate Software Group, Inc. was founded in 1990 and is headquartered in Weston, Florida.



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