Computer Task Group (CTG) and Oracle (ORCL) Financial Analysis
Computer Task Group (NASDAQ: CTG) and Oracle (NYSE:ORCL) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
Insider and Institutional Ownership
45.7% of Computer Task Group shares are held by institutional investors. Comparatively, 57.7% of Oracle shares are held by institutional investors. 10.4% of Computer Task Group shares are held by insiders. Comparatively, 29.0% of Oracle shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Oracle pays an annual dividend of $0.76 per share and has a dividend yield of 1.6%. Computer Task Group does not pay a dividend. Oracle pays out 33.2% of its earnings in the form of a dividend. Oracle has increased its dividend for 5 consecutive years.
Earnings & Valuation
This table compares Computer Task Group and Oracle’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Computer Task Group||$324.89 million||0.25||-$34.63 million||$0.15||34.73|
|Oracle||$37.73 billion||5.36||$9.34 billion||$2.29||21.14|
Oracle has higher revenue and earnings than Computer Task Group. Oracle is trading at a lower price-to-earnings ratio than Computer Task Group, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Computer Task Group has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Oracle has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.
This is a summary of current ratings and target prices for Computer Task Group and Oracle, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Computer Task Group||0||0||1||0||3.00|
Computer Task Group currently has a consensus price target of $9.00, indicating a potential upside of 72.74%. Oracle has a consensus price target of $54.84, indicating a potential upside of 13.26%. Given Computer Task Group’s stronger consensus rating and higher probable upside, research analysts plainly believe Computer Task Group is more favorable than Oracle.
This table compares Computer Task Group and Oracle’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Computer Task Group||0.78%||4.50%||2.80%|
Oracle beats Computer Task Group on 12 of the 17 factors compared between the two stocks.
About Computer Task Group
Computer Task Group, Incorporated (CTG) is an information technology (IT) solutions and staffing services company. The Company primarily operates in the segment of providing IT services to its clients. The Company has operations in North America and Europe. The Company is engaged in providing IT services, including IT Solutions, and IT and other Staffing. CTG provides these primary services to all of the markets that it serves. The services provided encompass the IT business solution life cycle, including phases for planning, developing, implementing, managing, and maintaining the IT solution. It provides administrative or warehouse employees to clients to supplement the IT resources. The Company promotes a portion of its services through five vertical market focus areas: technology service providers, manufacturing, healthcare (which includes services provided to healthcare providers, health insurers, and life sciences companies), financial services, and diversified industrials.
Oracle Corporation (Oracle) provides products and services that address all aspects of corporate information technology (IT) environments, including application, platform and infrastructure. The Company’s businesses include cloud and on-premise software, hardware and services. Its cloud and on-premise software business consists of three segments, including cloud software and on-premise software, which includes Software as a Service (SaaS) and Platform as a Service (PaaS) offerings, cloud infrastructure as a service (IaaS) and software license updates and product support. Its hardware business consists of two segments, including hardware products and hardware support. The Company’s services business includes the remainder of the Company’s segments. Its services business includes activities, such as consulting services, enhanced support services and education services, among others.
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