Qualstar (OTCMKTS:QBAKD) versus Teradata (NYSE:TDC) Financial Analysis

Qualstar (OTCMKTS:QBAKD) and Teradata (NYSE:TDC) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares Qualstar and Teradata’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Qualstar	1.06%	N/A	N/A
Teradata	24.93%	57.44%	9.15%

Valuation and Earnings

This table compares Qualstar and Teradata”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Qualstar	$6.59 million	1.14	$70,000.00	N/A	N/A
Teradata	$1.66 billion	1.80	$130.00 million	$4.36	7.28

Teradata has higher revenue and earnings than Qualstar.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Qualstar and Teradata, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Qualstar	0	0	0	0	0.00
Teradata	1	4	4	1	2.50

Teradata has a consensus target price of $35.67, indicating a potential upside of 12.39%. Given Teradata’s stronger consensus rating and higher probable upside, analysts plainly believe Teradata is more favorable than Qualstar.

Insider and Institutional Ownership

90.3% of Teradata shares are held by institutional investors. 37.5% of Qualstar shares are held by insiders. Comparatively, 1.0% of Teradata shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Qualstar has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500. Comparatively, Teradata has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500.

Summary

Teradata beats Qualstar on 12 of the 14 factors compared between the two stocks.

About Qualstar

Qualstar Corporation engages in power solutions and data storage systems businesses worldwide. The company operates through two segments, Power Solutions and Data Storage Systems. It provides data storage systems under the Qualstar brand and power solutions under the N2Power brand. The company designs, manufactures, and sells switching power supplies that are used to convert AC line voltage to DC voltages; or DC voltages to other DC voltages for use in various electronic equipment, such as telecommunications equipment, machine tools, routers, switches, wireless systems, and gaming devices. It also supports and sells data storage devices used to store, retrieve, and manage electronic data primarily in network computing environments. The company serves original equipment manufacturers, information technology departments, and lower and middle market companies through distributor and reseller network, distributors, and independent outside sales representatives. Qualstar Corporation was founded in 1984 and is based in Camarillo, California.

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.