Head to Head Comparison: Nice (NICE) and Teradata (TDC)

Nice (NASDAQ: NICE) and Teradata (NYSE:TDC) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nice 0 6 3 0 2.33
Teradata 2 6 5 0 2.23

Nice currently has a consensus price target of $101.13, indicating a potential downside of 5.94%. Teradata has a consensus price target of $36.00, indicating a potential downside of 12.37%. Given Nice’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Nice is more favorable than Teradata.

Volatility & Risk

Nice has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, Teradata has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.

Institutional & Insider Ownership

45.3% of Nice shares are held by institutional investors. Comparatively, 97.5% of Teradata shares are held by institutional investors. 0.0% of Nice shares are held by company insiders. Comparatively, 1.2% of Teradata shares 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.

Earnings & Valuation

This table compares Nice and Teradata’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nice $1.33 billion 4.92 $143.29 million $2.31 46.54
Teradata $2.16 billion 2.31 -$67.00 million $0.81 50.72

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

Profitability

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

Net Margins Return on Equity Return on Assets
Nice 10.98% 8.71% 5.27%
Teradata -3.32% 14.76% 4.48%

Nice Company Profile

NICE Ltd. provides enterprise software solutions worldwide. It operates in two segments, Customer Engagement and Financial Crime and Compliance. The Customer Engagement segment offers platform and solutions that empower businesses to deliver consistent and personalized experience across the customer journey, and delivered in the cloud, as well as on premise. Its solutions also optimize business performance and ensure compliance. This segment serves contact centers, back office operations, and retail branches in various industries, including banking, telecommunications, insurance, healthcare, business process outsourcing, government, utilities, travel, entertainment, and e-commerce. The Financial Crime and Compliance segment provides real time and cross-channel fraud prevention, anti-money laundering, brokerage compliance, and enterprise-wide case management services for financial institutions and regulatory authorities. The company also offers professional and support services covering various stages of the technology lifecycle. It sells its solutions and products directly to customers, as well as indirectly through selected partners. NICE Ltd. has strategic alliances with Accenture, Bain, Boston Consulting Group, Cisco, Cognizant, ConvergeOne, Deloitte, Fuze, IBM, Infosys, IPC, Motorola, PWC, RingCentral, Salesforce.com, Servion, Tata Consulting Services, and Verizon. The company was formerly known as NICE-Systems Ltd. and changed its name to NICE Ltd. in June 2016. NICE Ltd. was founded in 1986 and is headquartered in Ra'anana, Israel.

Teradata Company Profile

Teradata Corporation provides analytic data solutions and related services worldwide. The company operates through Americas Data and Analytics, and International Data and Analytics segments. Its analytic data solutions comprise software, hardware, and related business consulting and support services. The company offers Teradata IntelliCloud, an as-a-service solution for the management of performance, security, availability and operations; Teradata Analytics Platform, an integrated data warehouse engine that allow access to the analytic functions and analytic engines; Business Analytics Consulting and Solutions, which engages with business users through solution-based selling; and Ecosystem Architecture Consulting that enable customers to build an optimized analytical ecosystems. It serves various industries comprising communications, ecommerce, financial services, government, gaming, healthcare, insurance, manufacturing, media and entertainment, oil and gas, retail, travel and transportation, and utilities. Teradata Corporation was founded in 1979 and is headquartered in Dayton, Ohio.

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