Head-To-Head Contrast: Teradata (TDC) versus Its Competitors

Teradata (NYSE:TDC) is one of 955 publicly-traded companies in the “Software” industry, but how does it contrast to its peers? We will compare Teradata to related companies based on the strength of its risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.

Volatility and Risk

Teradata has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, Teradata’s peers have a beta of 1.10, suggesting that their average share price is 10% more volatile than the S&P 500.

Profitability

This table compares Teradata and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Teradata	N/A	N/A	N/A
Teradata Competitors	-1,063.49%	78.00%	-11.24%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Teradata and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teradata	1	6	3	0	2.20
Teradata Competitors	5703	21426	44631	1489	2.57

Teradata currently has a consensus target price of $34.33, suggesting a potential upside of 0.14%. As a group, “Software” companies have a potential upside of 25.75%. Given Teradata’s peers stronger consensus rating and higher probable upside, analysts clearly believe Teradata has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Teradata and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Teradata	$1.69 billion	N/A	7.22
Teradata Competitors	$584.84 million	$17.13 million	112.69

Teradata has higher revenue, but lower earnings than its peers. Teradata is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

90.3% of Teradata shares are held by institutional investors. Comparatively, 42.0% of shares of all “Software” companies are held by institutional investors. 1.0% of Teradata shares are held by company insiders. Comparatively, 19.8% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Teradata peers beat Teradata on 8 of the 12 factors compared.

About Teradata

Teradata Corporation, together with its subsidiaries, provides a connected multi-cloud data platform for enterprise analytics. The company offers Teradata Vantage, an open and connected platform designed to leverage data across an enterprise. Its business consulting services include support services for organizations to establish a data and analytic vision, enable a multi-cloud ecosystem architecture, and identify and operationalize analytical opportunities, as well as to ensure the analytical infrastructure delivers value. The company offers support and maintenance services. It serves clients in financial services, government, healthcare and life sciences, manufacturing, retail, telecommunications, and travel/transportation sectors through a direct sales force in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. Teradata Corporation was incorporated in 1979 and is headquartered in San Diego, California.