Comparing Pure Storage (NYSE:PSTG) and Teradata (NYSE:TDC)

Pure Storage (NYSE:PSTG) and Teradata (NYSE:TDC) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Pure Storage and Teradata, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pure Storage	1	5	13	0	2.63
Teradata	1	5	3	0	2.22

Pure Storage presently has a consensus target price of $69.5556, suggesting a potential upside of 17.77%. Teradata has a consensus target price of $26.8571, suggesting a potential upside of 28.35%. Given Teradata’s higher possible upside, analysts clearly believe Teradata is more favorable than Pure Storage.

Risk & Volatility

Pure Storage has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, Teradata has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pure Storage	3.93%	13.98%	4.91%
Teradata	6.57%	96.29%	8.32%

Institutional and Insider Ownership

83.4% of Pure Storage shares are owned by institutional investors. Comparatively, 90.3% of Teradata shares are owned by institutional investors. 5.6% of Pure Storage 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 company will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pure Storage	$3.17 billion	6.09	$106.74 million	$0.37	159.62
Teradata	$1.75 billion	1.13	$114.00 million	$1.13	18.52

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

About Pure Storage

Pure Storage, Inc. engages in the provision of data storage and management technologies, products, and services in the United States and internationally. Its Purity software is shared across its products and provides enterprise-class data services, such as always-on data reduction, data protection, and encryption, as well as storage protocols, including block, file, and object. The company also provides FlashArray integrated hardware systems, including FlashArray//X, FlashArray//C, FlashArray//XL, FlashArray//E, and FlashArray File Services for block-oriented storage, addressing databases, applications, virtual machines, and other traditional workloads; and FlashBlade integrated hardware systems comprising FlashBlade//S and FlashBlade//E for managing and processing unstructured data workloads of various types from real-time log analytics and commercial high-performance computing (HPC) to data protection and recovery. In addition, it offers cloud-native storage solutions, such as Portworx by Pure Storage, a cloud-native Kubernetes data management solution; and Portworx Data Services, a Database-as-a-Service platform for Kubernetes. Further, the company provides Pure Fusion, a Software-as-a-Service (SaaS) management plane, which enables storage administrators to unify storage arrays and optimize storage pools; Evergreen Architecture comprising Pure1, an AI-driven cloud-based management platform, as well as Evergreen//One and Evergreen//Flex data storage solutions; and Cloud Block Store, a virtual block storage array, that provides customers the flexibility to operate a hybrid cloud model with seamless data mobility across on-premises and public cloud environments. It sells its products and subscription services through direct sales force and channel partners. The company was formerly known as OS76, Inc. and changed its name to Pure Storage, Inc. in January 2010. Pure Storage, Inc. was incorporated in 2009 and is headquartered in Santa Clara, 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.