Oracle Corporation (ORCL) vs Block, Inc. (XYZ)

Oracle Corporation and Block, Inc. are both Software Infrastructure companies. Oracle Corporation is the larger, with a market value of $406.6B against $48.0B — 8.5× the size. Oracle Corporation trades at the lower P/E: 19.8× against 134×. Oracle Corporation grew revenue faster over the last twelve months: 21.6% against 5.07%. Oracle Corporation has the higher net margin (26.1% vs 1.43%) and the higher return on invested capital (9.75% vs 3.43%). Across the 21 metrics below, Oracle Corporation leads on 11 and Block, Inc. on 10.

Valuation

Metric ORCL XYZ Software Infrastructure median
P/E 19.79 134.19 28.38
P/S 5.30 1.86 2.98
P/B 6.11 2.11 2.93
Price to free cash flow n/m 11.99 16.28
EV/EBITDA 13.58 133.14 13.92
EV/Sales 6.42 1.89 2.90
Earnings yield 5.05% 0.75% 0.14%
Free cash flow yield (7.55%) 8.34% 1.24%

Profitability

Metric ORCL XYZ Software Infrastructure median
Gross margin 63.96% 46.36% 61.00%
Operating margin 32.12% 4.67% 0.00%
Net margin 26.10% 1.43% 0.00%
Free cash flow margin (40.01%) 15.50% 1.67%
Return on equity 43.12% 1.62% 0.60%
Return on assets 7.75% 0.94% 0.00%
Return on invested capital 9.75% 3.43% 0.00%

Growth

Metric ORCL XYZ Software Infrastructure median
Revenue growth (TTM) 21.62% 5.07% 13.41%
EPS growth (last fiscal year) 34.33% (53.95%) 27.10%
Revenue growth, 5-year CAGR 10.72% 20.56% 15.57%
Net income growth, 5-year CAGR 4.32% 43.70% 0.00%

Health

Metric ORCL XYZ Software Infrastructure median
Debt to equity 1.75 0.26 0.05
Current ratio 1.17 2.21 1.55
Net debt to EBITDA 3.03 0.22 0.08

Dividend

Metric ORCL XYZ Software Infrastructure median
Dividend yield 1.56% — 1.20%
Payout ratio 0.31 — 0.29

Size

Metric ORCL XYZ Software Infrastructure median
Market cap 406.60b 47.96b 752.37m

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