DST Systems (NYSE: DST) and Teradata Corporation (NYSE:TDC) are both mid-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.
DST Systems pays an annual dividend of $0.72 per share and has a dividend yield of 1.3%. Teradata Corporation does not pay a dividend. DST Systems pays out 7.1% of its earnings in the form of a dividend.
This is a breakdown of current ratings and price targets for DST Systems and Teradata Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
DST Systems currently has a consensus target price of $70.00, indicating a potential upside of 26.35%. Teradata Corporation has a consensus target price of $29.71, indicating a potential downside of 9.87%. Given DST Systems’ stronger consensus rating and higher possible upside, research analysts clearly believe DST Systems is more favorable than Teradata Corporation.
Risk and Volatility
DST Systems has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, Teradata Corporation has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.
This table compares DST Systems and Teradata Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares DST Systems and Teradata Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|DST Systems||$1.85 billion||1.81||$404.50 million||$10.13||5.47|
|Teradata Corporation||$2.18 billion||1.91||$250.00 million||$0.76||43.38|
DST Systems has higher revenue, but lower earnings than Teradata Corporation. DST Systems is trading at a lower price-to-earnings ratio than Teradata Corporation, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
85.0% of DST Systems shares are owned by institutional investors. Comparatively, 100.0% of Teradata Corporation shares are owned by institutional investors. 1.8% of DST Systems shares are owned by company insiders. Comparatively, 1.7% of Teradata Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
DST Systems beats Teradata Corporation on 9 of the 16 factors compared between the two stocks.
About DST Systems
DST Systems, Inc. (DST) is a provider of technology-based information processing and servicing solutions. The Company offers its solutions through data management, business processing and customer communications solutions to clients within the asset management, brokerage, retirement and healthcare markets. The Company operates through two segments: Financial Services and Healthcare Services. Through the Financial Services segment, DST provides investor, investment, advisor/intermediary and asset distribution services to companies within the financial services industry. The Healthcare Services segment uses the Company’s software applications to provide healthcare organizations a range of medical and pharmacy benefit solutions to aid their information processing, quality of care, cost management and payment integrity needs. Its investments in equity securities, private equity investments, real estate and certain financial interests are aggregated into an Investments and Other segment.
About Teradata Corporation
Teradata Corporation is a provider of analytic data platforms, analytic applications and related services. The Company’s segments include Americas region (North America and Latin America) and International region (Europe, Middle East, Africa, Asia Pacific and Japan). Its offerings include analytics solutions, ecosystem architecture consulting and hybrid cloud solutions. These solutions include software and hardware technology components, such as data warehousing, big data, tools for data integration, data discovery and business intelligence. Its services include a range of offerings, including consulting to enable organizations design, optimize and manage their analytic and big data environments, either on-premises or in the cloud. Its consulting services provide expertise in data architecture services; cloud, including software as a service and analytics as a service; private cloud; managed services, and related installation services.
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