Critical Comparison: Teradata (NYSE:TDC) versus PAR Technology (NYSE:PAR)

PAR Technology (NYSE:PAR – Get Free Report) and Teradata (NYSE:TDC – Get Free Report) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Risk & Volatility

PAR Technology has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Teradata has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
PAR Technology -14.52% -1.62% -0.97%
Teradata 27.08% 47.25% 10.29%

Analyst Recommendations

This is a summary of recent recommendations and price targets for PAR Technology and Teradata, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PAR Technology 1 2 5 0 2.50
Teradata 1 6 3 0 2.20

PAR Technology presently has a consensus price target of $24.61, indicating a potential upside of 26.73%. Teradata has a consensus price target of $34.78, indicating a potential upside of 1.19%. Given PAR Technology’s stronger consensus rating and higher possible upside, equities analysts plainly believe PAR Technology is more favorable than Teradata.

Valuation & Earnings

This table compares PAR Technology and Teradata”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PAR Technology $455.55 million 1.76 -$84.46 million ($1.76) -11.03
Teradata $1.66 billion 1.92 $130.00 million $4.75 7.24

Teradata has higher revenue and earnings than PAR Technology. PAR Technology is trading at a lower price-to-earnings ratio than Teradata, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

90.3% of Teradata shares are owned by institutional investors. 2.3% of PAR Technology shares are owned by company insiders. Comparatively, 1.0% of Teradata shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Teradata beats PAR Technology on 9 of the 14 factors compared between the two stocks.

About PAR Technology

(Get Free Report)

PAR Technology Corporation, together with its subsidiaries, provides omnichannel cloud-based hardware and software solutions to the restaurant and retail industries worldwide. The Restaurant/Retail segment offers PUNCHH, an enterprise-grade customer loyalty and engagement solution; MENU, an eCommerce platform for restaurant brands; BRINK POS, an open cloud, point-of-sale solution; PAR PAYMENT SERVICES, a merchant services business that enables electronic payment and processing services for businesses; and DATA CENTRAL, a back-office solution that leverages business intelligence and automation technologies. This segment also offers Point-of-Sale Hardware; wireless headsets for drive-thru order-taking; and kitchen display systems, payment devices, cash drawers, printers, and other peripherals. In addition, this segment provides services, such as hardware repair, installation and implementation, training, and on-site and technical support services. The Government segment provides intelligence, surveillance, and reconnaissance solutions; mission systems operations and maintenance, and commercial software products; systems engineering support and software-based solutions; satellite and teleport facility operation and maintenance, engineering, and installation services comprising inside and outside plant services, and maintenance of infrastructure and information systems; satellite ground system support comprising operations and maintenance, sustainment, upgrades, communications security management, anomaly response/resolution, process improvement, emergency response, and disaster recovery services; and information technology infrastructure library services to the United States Department of Defense, intelligence community (IC), and other federal agencies. This segment also offers various IC support services, systems integration, situational awareness solutions, and mission readiness support services. The company was founded in 1968 and is based in New Hartford, New York.

About Teradata

(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.

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