Analyzing Teradata (TDC) and Its Competitors

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Teradata and its peers, as reported by MarketBeat.

Teradata currently has a consensus price target 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.

Insider and Institutional Ownership

90.3% of Teradata shares are owned by institutional investors. Comparatively, 42.0% of shares of all “Software” companies are owned by institutional investors. 1.0% of Teradata shares are owned by insiders. Comparatively, 19.8% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Teradata and its peers top-line revenue, earnings per share (EPS) and valuation.

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.

Profitability

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

Volatility & Risk

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

Summary

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

Teradata Company Profile

(Get Free Report)

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.