Head-To-Head Review: Teradata (NYSE:TDC) and Western Digital (NASDAQ:WDC)

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

Analyst Ratings

This is a summary of recent ratings and target prices for Western Digital and Teradata, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Western Digital	0	3	18	0	2.86
Teradata	1	6	3	0	2.20

Western Digital presently has a consensus price target of $65.26, indicating a potential downside of 4.02%. Teradata has a consensus price target of $27.25, indicating a potential upside of 26.10%. Given Teradata’s higher probable upside, analysts clearly believe Teradata is more favorable than Western Digital.

Institutional & Insider Ownership

92.5% of Western Digital shares are owned by institutional investors. Comparatively, 90.3% of Teradata shares are owned by institutional investors. 0.3% of Western Digital shares are owned by insiders. Comparatively, 0.9% of Teradata shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Western Digital has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500. Comparatively, Teradata has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Western Digital	13.33%	20.58%	9.01%
Teradata	8.10%	129.98%	9.47%

Valuation & Earnings

This table compares Western Digital and Teradata”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Western Digital	$13.00 billion	1.82	-$798.00 million	$5.28	12.88
Teradata	$1.75 billion	1.18	$114.00 million	$1.42	15.22

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

Summary

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

About Western Digital

Western Digital Corporation develops, manufactures, and sells data storage devices and solutions in the United States, China, Hong Kong, Europe, the Middle East, Africa, rest of Asia, and internationally. It offers client devices, including hard disk drives (HDDs) and solid state drives (SSDs) for desktop and notebook personal computers (PCs), gaming consoles, and set top boxes; and flash-based embedded storage products for mobile phones, tablets, notebook PCs, and other portable and wearable devices, as well as automotive, Internet of Things, industrial, and connected home applications. The company also provides enterprise HDDs; enterprise SSDs consisting of flash-based SSDs and software solutions for use in enterprise servers, online transactions, data analysis, and other enterprise applications; and data storage platforms. In addition, it offers external HDD storage products in mobile and desktop form; client portable SSDs; removable cards that are used in consumer devices comprising mobile phones, tablets, imaging systems, and cameras and smart video systems; universal serial bus flash drives for use in the computing and consumer markets; and wireless drive products used in-field backup of created content, as well as wireless streaming of high-definition movies, photos, music, and documents to tablets, smartphones, and PCs. The company sells its products under the Western Digital, SanDisk, and WD brands to original equipment manufacturers, distributors, dealers, resellers, and retailers. Western Digital Corporation was founded in 1970 and is headquartered in San Jose, California.

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.