Buy Oracle Corporation (ORCL)?

As for Microsoft Corporation (NASDAQ:MSFT), the company has made a push of late into the cloud-based sector. It has secured many international contracts and announced the emergence of Xbox Smart Glass technology. At a forward PE of 11.89, its shares are not as discounted as Oracle at the moment. With a 5-year average dividend yield of 2.20%, it is more attractive than SAP AG (NYSE:SAP) and Oracle Corporation (NASDAQ:ORCL) (0.80%).

Conclusion

From an investor’s standpoint, Oracle offers investors a 5-year average dividend yield of 0.89%, only Microsoft Corporation (NASDAQ:MSFT) and SAP AG (NYSE:SAP) will offer a higher payout among the four rivals. At 10.62%, it will grow faster than Microsoft (8.62%) in the next five years. In addition, Oracle is the cheapest among the four companies since it has the lowest forward PE.

Wall Street currently holds an average price target of $36.00 on Oracle Corporation (NASDAQ:ORCL), which represents close to a 17% upside from current levels. Some of the bullish money managers invested in the stock are Lou Simpson, Glenn Greenberg, and Anthony Bozza., In addition, Oracle also gives investors a decent dividend yield of 1.50%. Only Microsoft Corporation (NASDAQ:MSFT)(2.60%) offers a higher payout. So, I think now is the time to consider buying Oracle Corporation (NASDAQ:ORCL).

Adetokunbo Abiola has no position in any stocks mentioned. The Motley Fool recommends salesforce.com, inc. (NYSE:CRM). The Motley Fool owns shares of Microsoft Corporation (NASDAQ:MSFT) and Oracle Corporation (NASDAQ:ORCL).

The article Is Now a Good Time to Snatch Up Oracle? originally appeared on Fool.com.

Adetokunbo is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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