Oracle (NYSE:ORCL – Get Free Report) and Hello Group (NASDAQ:MOMO – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.
Profitability
This table compares Oracle and Hello Group’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Oracle | 20.40% | 171.38% | 9.57% |
Hello Group | 12.40% | 12.09% | 8.27% |
Institutional & Insider Ownership
42.4% of Oracle shares are held by institutional investors. Comparatively, 51.0% of Hello Group shares are held by institutional investors. 42.2% of Oracle shares are held by insiders. Comparatively, 61.4% of Hello Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Oracle | 0 | 11 | 18 | 0 | 2.62 |
Hello Group | 2 | 2 | 2 | 0 | 2.00 |
Oracle presently has a consensus price target of $168.52, suggesting a potential downside of 11.13%. Hello Group has a consensus price target of $7.93, suggesting a potential upside of 18.28%. Given Hello Group’s higher possible upside, analysts clearly believe Hello Group is more favorable than Oracle.
Risk & Volatility
Oracle has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Hello Group has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.
Earnings and Valuation
This table compares Oracle and Hello Group”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Oracle | $52.96 billion | 9.92 | $10.47 billion | $3.88 | 48.87 |
Hello Group | $1.69 billion | 0.57 | $275.72 million | $1.00 | 6.70 |
Oracle has higher revenue and earnings than Hello Group. Hello Group 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 Hello Group on 11 of the 14 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 Hello Group
Hello Group Inc. provides mobile-based social and entertainment services in the People's Republic of China. It operates in three segments: Momo, Tantan, and QOOL. The company offers Momo, a mobile application that connects people and facilitates social interactions based on location, interests, and various online recreational activities, including live talent shows, short videos, social games, as well as other video- and audio-based interactive experiences, such as online parties, mobile karaoke and user participated reality shows; Tantan, a social and dating application; and other applications under the Hertz, Soulchill, Duidui, and Tietie names. The company also provides livestream services for various content and activities comprising talent shows, such as singing, dancing, and talk shows, as well as casual chatting, and other forms of interactions between broadcasters and viewers; value-added services; advertising and marketing services; and mobile games. The company was formerly known as Momo Inc. and changed its name to Hello Group Inc. in August 2021. Hello Group Inc. was incorporated in 2011 and is headquartered in Beijing, the People's Republic of China.
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