Financial Analysis: Teradata (TDC) versus Dell (DELL)

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

Insider and Institutional Ownership

98.5% of Teradata shares are owned by institutional investors. Comparatively, 22.9% of Dell shares are owned by institutional investors. 1.2% of Teradata shares are owned by insiders. Comparatively, 46.0% of Dell shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Teradata has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Dell has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Teradata and Dell, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teradata 2 5 4 0 2.18
Dell 0 1 5 0 2.83

Teradata currently has a consensus price target of $42.11, suggesting a potential upside of 4.99%. Dell has a consensus price target of $61.00, suggesting a potential upside of 37.17%. Given Dell’s stronger consensus rating and higher probable upside, analysts clearly believe Dell is more favorable than Teradata.

Profitability

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

Net Margins Return on Equity Return on Assets
Teradata -2.68% 18.61% 4.92%
Dell -2.84% 31.57% 3.97%

Earnings and Valuation

This table compares Teradata and Dell’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Teradata $2.16 billion 2.20 -$67.00 million $0.81 49.52
Dell $78.66 billion 0.43 -$3.73 billion $6.17 7.21

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

About Teradata

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.

About Dell

Dell Inc. (Dell) is a global information technology company that offers its customers a range of solutions and services delivered directly by Dell and through other distribution channels. Dell is a holding company that conducts its business worldwide through its subsidiaries. The Company operates in four segments: Large Enterprise, Public, Small and Medium Business, and Consumer. The Company’s Large Enterprise customers include global and national corporate businesses. Its Public customers, which include educational institutions, government, health care, and law enforcement agencies, operate in their own communities. Its SMB segment is focused on helping small and medium-sized businesses by offering products, services, and solutions. Its Consumer segment is focused on delivering technology experience of entertainment, mobility, gaming, and design. In March 2014, the Company acquired StatSoft, a provider of advanced analytics solutions.

Receive News & Ratings for Teradata Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Teradata and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply