Super Micro Computer (NASDAQ:SMCI – Get Free Report) and Teradata (NYSE:TDC – Get Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.
Profitability
This table compares Super Micro Computer and Teradata’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Super Micro Computer | 5.61% | 20.41% | 11.86% |
| Teradata | 8.10% | 129.98% | 9.47% |
Institutional & Insider Ownership
84.1% of Super Micro Computer shares are owned by institutional investors. Comparatively, 90.3% of Teradata shares are owned by institutional investors. 17.6% of Super Micro Computer shares are owned by insiders. Comparatively, 0.9% of Teradata shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Super Micro Computer | $14.94 billion | 2.06 | $1.15 billion | $1.90 | 27.11 |
| Teradata | $1.75 billion | 1.18 | $114.00 million | $1.42 | 15.16 |
Super Micro Computer has higher revenue and earnings than Teradata. Teradata is trading at a lower price-to-earnings ratio than Super Micro Computer, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Super Micro Computer has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, Teradata has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings for Super Micro Computer and Teradata, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Super Micro Computer | 2 | 7 | 7 | 1 | 2.41 |
| Teradata | 1 | 6 | 3 | 0 | 2.20 |
Super Micro Computer currently has a consensus price target of $42.89, indicating a potential downside of 16.71%. Teradata has a consensus price target of $27.25, indicating a potential upside of 26.60%. Given Teradata’s higher probable upside, analysts plainly believe Teradata is more favorable than Super Micro Computer.
Summary
Super Micro Computer beats Teradata on 11 of the 15 factors compared between the two stocks.
About Super Micro Computer
Super Micro Computer, Inc., together with its subsidiaries, develops and manufactures high performance server and storage solutions based on modular and open architecture in the United States, Europe, Asia, and internationally. Its solutions range from complete server, storage systems, modular blade servers, blades, workstations, full racks, networking devices, server sub-systems, server management software, and security software. The company provides application-optimized server solutions, rackmount and blade servers, storage, and subsystems and accessories; and server software management solutions, such as Server Management Suite, including Supermicro Server Manager, Supermicro Power Management software, Supermicro Update Manager, SuperCloud Composer, and SuperDoctor 5. In addition, it offers server subsystems and accessories comprising server boards, chassis, power supplies, and other accessories. Further, the company provides server and storage system integration, configuration, and software upgrade and update services; and technical documentation services, as well as identifies service requirements, creates and executes project plans, and conducts verification testing and technical documentation, and training services. Additionally, it offers help desk and on-site product support services for its server and storage systems; and customer support services, including ongoing maintenance and technical support for its products. The company provides its products to enterprise data centers, cloud computing, artificial intelligence, and 5G and edge computing markets. It sells its products through direct and indirect sales force, distributors, value-added resellers, system integrators, and original equipment manufacturers. The company was incorporated in 1993 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.
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