MDB vs. ORCL: Which Database Stock Deserves a Place in Your Portfolio?

MongoDB MDB and Oracle ORCL are two leading names in the database market, but they’re built on very different foundations. MongoDB is a developer-first, cloud-native NoSQL platform optimized for flexibility and speed, while Oracle is a long-established enterprise provider known for its robust relational databases and expanding multicloud presence.

As AI adoption and cloud migrations reshape data infrastructure, the key question for investors is: Which company is better positioned to capture the next wave of growth? Let’s break down the fundamentals and financials for both MDB and ORCL to see which stock deserves a spot in your portfolio.

The Case for MDB Stock

MongoDB has been consistently gaining from the growing demand for AI-powered applications. Its flexible document model is a strong fit for handling fast-changing, unstructured data commonly used in AI. The company further strengthened its AI capabilities by acquiring Voyage AI. The latest release, Voyage 3.5, has helped improve embedding accuracy and cut storage costs by more than 80%.

The platform brings together real-time data, search and retrieval into one system, allowing developers to avoid complicated integrations. MongoDB’s tools are already in use at companies like LG Uplus, where they support thousands of agents with quicker and more accurate responses, boosting their standing in the AI space.

MongoDB has also been growing its partner ecosystem. It recently added backup integrations with Rubrik and Cohesity, improving data protection for enterprise customers, especially those using hybrid cloud setups. These partnerships highlight MongoDB’s focus on enterprise-grade reliability, adding to the momentum around the platform’s broader adoption.

In the quarter, MongoDB generated $549 million in revenues, growing 22% year over year. Atlas revenues increased 26% year over year and represented 72% of total revenues. Non-GAAP operating income was $87 million, with net income of $86 million and free cash flow of $106 million.

The Zacks Consensus Estimate for fiscal second-quarter earnings is pinned at 64 cents per share, which has remained steady over the past 30 days. The estimate indicates a year-over-year decline of 8.57%.

MongoDB, Inc. Price and Consensus

MongoDB, Inc. price-consensus-chart | MongoDB, Inc. Quote

The Case for ORCL Stock

Oracle has been expanding its cloud database business through offerings like Autonomous Database and Oracle Database 23AI. These products allow customers to run databases not only on Oracle Cloud Infrastructure but also across Azure, AWS and Google Cloud through its multicloud partnerships.

The company has focused on AI-readiness by integrating vector search into its database stack. Oracle stated that Oracle 23AI enables customer data to be accessed by large language models while preserving privacy and security. As AI adoption grows, Oracle believes its database will become increasingly central to enterprise infrastructure.

In the fourth quarter of fiscal 2025, Oracle reported that cloud database services grew 31% year over year, with Autonomous Database consumption revenues up 47%. Cloud database services were reported to have an annualized revenue run rate of $2.6 billion.

However, Oracle’s database business is under pressure as cloud migration accelerates and legacy revenue streams weaken. In fiscal 2025, database license support grew just 7%. A large portion of revenues remains tied to on-premise deployments, making Oracle vulnerable as customers shift to cloud-native alternatives. Its $21.2 billion in capital spending led to negative free cash flow of $400 million. Additionally, operating across multiple clouds adds complexity and increases reliance on rival platforms.

The Zacks Consensus Estimate for fiscal first-quarter earnings is pinned at $1.47 per share, which has remained steady over the past 30 days. The estimate indicates year-over-year growth of 5.76%.

Oracle Corporation Price and Consensus

Oracle Corporation price-consensus-chart | Oracle Corporation Quote

Valuation and Price Performance of MDB and ORCL

Valuation-wise, MDB shares are trading relatively cheaper than ORCL, although both have a Value Score of F.

In terms of forward 12-month Price/Sales, MDB shares are trading at 6.76X, below ORCL’s 9.46X.

Price/Sales (F12M)

Year to date, ORCL shares have gained 38.9%, while MDB shares have lost 11.2%. For MDB, the year-to-date plunge indicates that there is more upside left in the stock, whereas for ORCL, much of the demand and growth have already been priced in.

MDB and ORCL Stock Performance

Conclusion

MongoDB has been steadily expanding its cloud-native database platform with AI-ready features and growing enterprise adoption. While Oracle shows solid momentum in multicloud deployments, much of its growth is offset by legacy drag and capital-heavy expansion. MDB’s valuation is more attractive, and its recent underperformance leaves more room for upside. With faster product innovation, developer-led traction and improving free cash flow, MongoDB stands out as a better long-term investment in the database market.

MDB, with a Zacks Rank #2 (Buy), currently offers a better investment opportunity than ORCL, which has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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