Head to Head Contrast: Oracle (NYSE:ORCL) versus Hello Group (NASDAQ:MOMO)

Oracle (NYSE:ORCL) and Hello Group (NASDAQ:MOMO) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

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%

Analyst Ratings

This is a summary of current ratings and price targets for Oracle and Hello Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oracle	0	11	19	0	2.63
Hello Group	2	2	2	0	2.00

Oracle presently has a consensus target price of $168.52, indicating a potential downside of 10.97%. Hello Group has a consensus target price of $7.93, indicating a potential upside of 14.19%. Given Hello Group’s higher probable upside, analysts clearly believe Hello Group is more favorable than Oracle.

Earnings & Valuation

This table compares Oracle and Hello Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oracle	$52.96 billion	9.90	$10.47 billion	$3.88	48.79
Hello Group	$1.69 billion	0.59	$275.72 million	$1.00	6.94

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.

Insider and Institutional Ownership

42.4% of Oracle shares are owned by institutional investors. Comparatively, 51.0% of Hello Group shares are owned by institutional investors. 42.2% of Oracle shares are owned by insiders. Comparatively, 61.4% of Hello Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Oracle has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, Hello Group has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.

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.