Reviewing Teradata (TDC) & The Competition

Teradata (NYSE:TDC) is one of 953 public companies in the “Software” industry, but how does it weigh in compared to its peers? We will compare Teradata to related businesses based on the strength of its profitability, valuation, institutional ownership, earnings, dividends, risk and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Teradata	27.08%	47.25%	10.29%
Teradata Competitors	-612.70%	20.86%	-8.99%

Valuation and Earnings

This table compares Teradata and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Teradata	$1.66 billion	$130.00 million	7.25
Teradata Competitors	$1.80 billion	$385.91 million	109.95

Teradata’s peers have higher revenue and earnings than Teradata. 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.

Institutional and Insider Ownership

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Teradata and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teradata	1	6	3	0	2.20
Teradata Competitors	5729	21452	44734	1492	2.57

Teradata presently has a consensus price target of $34.78, indicating a potential upside of 0.95%. As a group, “Software” companies have a potential upside of 25.92%. Given Teradata’s peers stronger consensus rating and higher possible upside, analysts plainly believe Teradata has less favorable growth aspects than its peers.

Risk & Volatility

Teradata has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, Teradata’s peers have a beta of 1.19, meaning that their average stock price is 19% more volatile than the S&P 500.

Summary

Teradata peers beat Teradata on 9 of the 13 factors compared.

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.