Head-To-Head Analysis: NetApp (NASDAQ:NTAP) vs. Teradata (NYSE:TDC)

NetApp (NASDAQ:NTAP) 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 earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NetApp	17.77%	123.24%	12.49%
Teradata	6.57%	96.29%	8.32%

Volatility & Risk

NetApp has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500. Comparatively, Teradata has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for NetApp and Teradata, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NetApp	0	10	7	0	2.41
Teradata	2	5	3	0	2.10

NetApp currently has a consensus target price of $124.07, indicating a potential upside of 4.64%. Teradata has a consensus target price of $26.86, indicating a potential upside of 21.39%. Given Teradata’s higher probable upside, analysts plainly believe Teradata is more favorable than NetApp.

Institutional & Insider Ownership

92.2% of NetApp shares are held by institutional investors. Comparatively, 90.3% of Teradata shares are held by institutional investors. 0.3% of NetApp shares are held by insiders. Comparatively, 0.9% of Teradata shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares NetApp 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
NetApp	$6.57 billion	3.60	$1.19 billion	$5.66	20.95
Teradata	$1.75 billion	1.19	$114.00 million	$1.13	19.58

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

Summary

NetApp beats Teradata on 12 of the 14 factors compared between the two stocks.

About NetApp

NetApp, Inc. provides cloud-led and data-centric services to manage and share data on-premises, and private and public clouds worldwide. It operates in two segments, Hybrid Cloud and Public Could. The company offers intelligent data management software, such as NetApp ONTAP, NetApp Snapshot, NetApp SnapCenter Backup Management, NetApp SnapMirror Data Replication, NetApp SnapLock Data Compliance, and storage infrastructure solutions, including NetApp All-Flash FAS series, NetApp Fabric Attached Storage, NetApp E/EF series, and NetApp StorageGRID. In addition, it provides cloud storage and data services comprising NetApp Cloud Volumes ONTAP, Azure NetApp Files, Amazon FSx for NetApp ONTAP, NetApp Cloud Volumes Service for Google Cloud, and cloud operations services, such as NetApp Cloud Insights, Spot by NetApp, and Instaclustr. Further, the company offers application-aware data management service under the NetApp Astra name; and professional and support services, such as strategic consulting, professional, managed, and support services. Additionally, it provides assessment, design, implementation, and migration services. The company serves the energy, financial service, government, technology, internet, life science, healthcare service, manufacturing, media, entertainment, animation, video postproduction, and markets through a direct sales force and an ecosystem of partners. NetApp, Inc. was incorporated in 1992 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.