Sep 12, 2024, 12:00 AM
Sep 12, 2024, 12:00 AM

Two Smarter Alternative Bets Than Oracle Stock

Highlights
  • Fiserv and Barrick Gold have outperformed Oracle in revenue and operating profit growth over the last twelve months.
  • Fiserv's annual growth rate is 7.2%, while Oracle's is 6.0%, and Barrick Gold has shown the strongest revenue growth.
  • Investors may find Fiserv and Barrick Gold to be more attractive investments due to their better growth metrics and lower valuation ratios.
Story

In recent evaluations, Fiserv and Barrick Gold have demonstrated superior growth metrics compared to Oracle, particularly in revenue and operating profits over the past year and the latest quarter. Fiserv, a financial technology firm, has shown an annual growth rate of 7.2% and a quarterly growth of 7.4%, while Oracle's growth rates stand at 6.0% and 3.3%, respectively. Barrick Gold has outperformed both companies in revenue growth, indicating a strong market position in the mining sector. The analysis highlights that investors pay significantly less for Fiserv and Barrick Gold stocks relative to their earnings before interest and taxes, with Fiserv priced at $18.65 per dollar of earnings compared to Oracle's $26.71. This suggests that Fiserv and Barrick Gold not only offer better growth prospects but also present a more attractive valuation for investors. Despite Oracle's ongoing expansion into cloud infrastructure, competing with major players like Amazon and Microsoft, its stock remains at a higher price-to-operating income ratio of nearly 27x. In contrast, Fiserv and Barrick Gold trade at ratios between 11x and 19x, indicating a more favorable investment opportunity. Overall, the findings suggest that Fiserv and Barrick Gold are currently more appealing investment options than Oracle, given their stronger growth metrics and lower valuation ratios, which could lead to better returns for investors in the long run.

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