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Better Buy: IBM vs. Oracle


Over the past decade, IBM (NYSE: IBM) and Oracle (NYSE: ORCL) both struggled to grow their cloud segments to offset the slower growth of their legacy businesses.

IBM dialed back its buybacks and bought companies like Softlayer and Red Hat to bolster its "strategic initiatives" in the cloud, mobile, analytics, social, and security markets. Oracle bought some big companies like NetSuite, but also accelerated its buybacks to boost its earnings without generating any meaningful revenue growth.

IBM and Oracle's stocks both advanced nearly 20% this year, but still underperformed the S&P 500's near-30% gain. Will either "mature" tech stock fare better next year? Let's examine their core businesses to find out.

Image source: Getty Images.

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Source Fool.com

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