Critical Comparison: Teradata (NYSE:TDC) and Quantum (NASDAQ:QMCO)

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teradata	1	6	3	0	2.20
Quantum	0	2	1	0	2.33

Teradata presently has a consensus target price of $27.25, indicating a potential upside of 35.24%. Quantum has a consensus target price of $19.00, indicating a potential upside of 152.32%. Given Quantum’s stronger consensus rating and higher probable upside, analysts plainly believe Quantum is more favorable than Teradata.

Volatility and Risk

Teradata has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Quantum has a beta of 2.68, indicating that its share price is 168% more volatile than the S&P 500.

Valuation and Earnings

This table compares Teradata and Quantum”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teradata	$1.75 billion	1.10	$114.00 million	$1.42	14.19
Quantum	$311.60 million	0.17	-$41.29 million	N/A	N/A

Teradata has higher revenue and earnings than Quantum.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Teradata	8.10%	129.98%	9.47%
Quantum	N/A	N/A	N/A

Insider and Institutional Ownership

90.3% of Teradata shares are owned by institutional investors. Comparatively, 63.7% of Quantum shares are owned by institutional investors. 0.9% of Teradata shares are owned by company insiders. Comparatively, 4.5% of Quantum shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Teradata beats Quantum on 8 of the 12 factors compared between the two stocks.

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.

About Quantum

Quantum Corporation provides products for storing and managing digital video and unstructured data in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers Myriad All-Flash File and Object Storage Software for high performance enterprise unstructured data applications such as AI, machine learning, and data analytics; Unified Surveillance Platform Software that unified compute and storage for video surveillance recording, storage, and analytics; StorNext Hybrid Flash/Disk File Storage Software for video editing, post-production, and streaming applications, as well as digital file archives; and CatDV Asset Management Software for indexing, cataloging, enriching video, audio, and image files, and workflow orchestration. It also provides ActiveScale Object Storage Software that scalable and durable storage for long term data preservation and protection; DXi Backup Appliances to build backup appliances for high-speed backup and recovery and multisite data protection; and Scalar Tape Storage that secure storage for long term data archiving and offline data protection which are used by hyperscalers and enterprises. In addition, the company sells linear tape-open (LTO) a tape drives for small business data protection and archiving; and LTO media for use in tape storage systems. Further, it offers global support, managed services, customer support agreements, software subscriptions, installation, education, and consulting and training services, as well as Quantum-as-a-Service. The company sells its products through a network of distributors, value-added resellers, direct marketing resellers, original equipment manufacturers, and other suppliers, as well as directly to corporate entities and government agencies. It has a partnership with Tiger Surveillance to deliver end-to-end solutions for long-term retention and archiving of video surveillance data. Quantum Corporation was founded in 1980 and is headquartered in San Jose, California.