Reviewing Qumu (NASDAQ:QUMU) & Teradata (NYSE:TDC)

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

Institutional and Insider Ownership

40.5% of Qumu shares are held by institutional investors. Comparatively, 95.5% of Teradata shares are held by institutional investors. 15.4% of Qumu shares are held by company insiders. Comparatively, 0.7% of Teradata shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Qumu -68.13% -84.86% -40.72%
Teradata 7.67% 40.90% 8.44%

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Qumu $24.02 million 1.34 -$16.36 million ($1.01) -1.81
Teradata $1.92 billion 2.53 $147.00 million $1.30 36.40

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

Analyst Recommendations

This is a summary of current ratings and price targets for Qumu and Teradata, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Qumu 0 1 1 0 2.50
Teradata 1 2 7 0 2.60

Qumu presently has a consensus target price of $6.00, suggesting a potential upside of 227.87%. Teradata has a consensus target price of $57.90, suggesting a potential upside of 22.36%. Given Qumu’s higher probable upside, analysts clearly believe Qumu is more favorable than Teradata.

Risk & Volatility

Qumu has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, Teradata has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Summary

Teradata beats Qumu on 11 of the 14 factors compared between the two stocks.

About Qumu (Get Rating)

Qumu Corp. provides the software solutions to create, manage, secure, distribute and measure the success of live and on-demand video for the enterprise. It offers enterprise video content management software solutions, hardware, maintenance and support, and professional and other services. The company platform enables global organizations to drive employee engagement, increase access to video, and modernize the workplace by providing a more efficient and effective way to share knowledge. Qumu was founded in 1978 and is headquartered in Minneapolis, MN.

About Teradata (Get Rating)

Teradata Corp. is the cloud data analytics company which is built for a multi-cloud reality and solving the data challenges at scale. It operates through three operating segments: Americas (North America and Latin America), EMEA(Europe, Middle East and Africa) and APJ(Asia Pacific and Japan) geographic regions. The company was founded on July 13, 1979 and is headquartered in San Diego, CA.

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