Head to Head Review: Teradata (NYSE:TDC) versus Onespan (NASDAQ:OSPN)

Onespan (NASDAQ:OSPN) and Teradata (NYSE:TDC) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.

Institutional and Insider Ownership

95.5% of Onespan shares are held by institutional investors. Comparatively, 90.3% of Teradata shares are held by institutional investors. 2.0% of Onespan shares are held by insiders. Comparatively, 1.0% of Teradata shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Onespan	27.52%	15.96%	11.19%
Teradata	27.08%	47.25%	10.29%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Onespan	$243.18 million	3.28	$72.90 million	$1.81	11.93
Teradata	$1.66 billion	1.78	$130.00 million	$4.75	6.72

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

Risk and Volatility

Onespan has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, Teradata has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Onespan and Teradata, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Onespan	0	3	2	0	2.40
Teradata	1	5	3	0	2.22

Onespan currently has a consensus target price of $24.00, suggesting a potential upside of 11.16%. Teradata has a consensus target price of $36.12, suggesting a potential upside of 13.20%. Given Teradata’s higher probable upside, analysts plainly believe Teradata is more favorable than Onespan.

Summary

Onespan beats Teradata on 8 of the 14 factors compared between the two stocks.

About Onespan

OneSpan Inc., together with its subsidiaries, designs, develops, and markets digital solutions for identity, authentication, and secure digital agreements worldwide. The company offers OneSpan Sign, a range of e-signature requirements for occasional agreement to processing tens of thousands of transactions; OneSpan Cloud Authentication, a cloud-based multifactor authentication solution that supports a range of authentication options, including biometrics, push notification, and visual cryptograms for transaction data security, SMS, and hardware authenticators; and OneSpan Identity Verification, which enables banks and financial institutions identity verification services. It also provides Mobile Security Suite, a software development kit that protect mobile transactions; Digipass Authenticators, consisting of a wide variety of authentication devices; authentication servers that provides a range of strong authentication utilities and solutions designed to allow organizations to securely authenticate users and transactions; and Digipass FX1 BIO, a physical passkey with fingerprint scan built for the workforce authentication market. In addition, it offers Virtual Room, a purpose-built, high-assurance solution that blends the simplicity of a consumer video collaboration app with high-assurance identity and authentication security; OneSpan Notary, an online notary solution developed for organizations with in-house notaries; and OneSpan Trust Vault, a blockchain-based decentralized digital storage solution that helps organizations meet compliance, regulatory, and chain of custody requirements for critical documents. It sells its solutions through its direct sales force, as well as through distributors, resellers, systems integrators, and original equipment manufacturers. The company was formerly known as VASCO Data Security International, Inc. and changed its name to OneSpan Inc. in May 2018. OneSpan Inc. was founded in 1991 and is headquartered in Boston, Massachusetts.

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.