Comparing Teradata (NYSE:TDC) & Bitfarms (NASDAQ:BITF)
by Danessa Lincoln · The Markets DailyTeradata (NYSE:TDC – Get Free Report) and Bitfarms (NASDAQ:BITF – Get Free Report) are both mid-cap technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.
Institutional and Insider Ownership
90.3% of Teradata shares are held by institutional investors. Comparatively, 20.6% of Bitfarms shares are held by institutional investors. 1.0% of Teradata shares are held by insiders. Comparatively, 9.5% of Bitfarms shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Teradata and Bitfarms”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Teradata | $1.69 billion | 1.64 | $130.00 million | $4.75 | 6.28 |
| Bitfarms | $229.28 million | 9.07 | -$138.65 million | ($0.23) | -15.00 |
Teradata has higher revenue and earnings than Bitfarms. Bitfarms is trading at a lower price-to-earnings ratio than Teradata, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Teradata has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, Bitfarms has a beta of 3.77, indicating that its stock price is 277% more volatile than the S&P 500.
Profitability
This table compares Teradata and Bitfarms’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Teradata | 27.08% | 47.25% | 10.29% |
| Bitfarms | -48.26% | -4.48% | -3.71% |
Analyst Recommendations
This is a summary of recent recommendations for Teradata and Bitfarms, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Teradata | 1 | 6 | 3 | 0 | 2.20 |
| Bitfarms | 1 | 1 | 4 | 0 | 2.50 |
Teradata currently has a consensus target price of $34.33, suggesting a potential upside of 15.12%. Bitfarms has a consensus target price of $4.67, suggesting a potential upside of 35.51%. Given Bitfarms’ stronger consensus rating and higher probable upside, analysts clearly believe Bitfarms is more favorable than Teradata.
Summary
Teradata beats Bitfarms on 8 of the 14 factors compared between the two stocks.
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.
About Bitfarms
Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in Canada, the United States, Paraguay, and Argentina. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada. It also undertakes hosting of third-party mining hardware. The company was founded in 2017 and is based in Toronto, Canada.