Analyzing Teradata (TDC) and Super Micro Computer (SMCI)

Teradata (NYSE: TDC) and Super Micro Computer (NASDAQ:SMCI) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.

Insider & Institutional Ownership

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97.9% of Teradata shares are held by institutional investors. Comparatively, 81.4% of Super Micro Computer shares are held by institutional investors. 1.2% of Teradata shares are held by insiders. Comparatively, 24.0% of Super Micro Computer shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Teradata and Super Micro Computer, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teradata 2 8 3 0 2.08
Super Micro Computer 0 6 1 0 2.14

Teradata currently has a consensus price target of $34.44, suggesting a potential downside of 12.27%. Super Micro Computer has a consensus price target of $28.83, suggesting a potential upside of 76.35%. Given Super Micro Computer’s stronger consensus rating and higher possible upside, analysts plainly believe Super Micro Computer is more favorable than Teradata.

Valuation and Earnings

This table compares Teradata and Super Micro Computer’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Teradata $2.16 billion 2.22 -$67.00 million $0.81 48.47
Super Micro Computer $2.53 billion 0.31 $69.32 million $1.34 12.20

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

Profitability

This table compares Teradata and Super Micro Computer’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teradata -3.11% 15.54% 5.16%
Super Micro Computer N/A N/A N/A

Volatility and Risk

Teradata has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Super Micro Computer has a beta of 0.17, indicating that its share price is 83% less volatile than the S&P 500.

Teradata Company Profile

Teradata Corporation provides analytic data solutions and related services worldwide. The company operates through Americas Data and Analytics, and International Data and Analytics segments. Its analytic data solutions comprise software, hardware, and related business consulting and support services. The company offers Teradata IntelliCloud, an as-a-service solution for the management of performance, security, availability and operations; Teradata Analytics Platform, an integrated data warehouse engine that allow access to the analytic functions and analytic engines; Business Analytics Consulting and Solutions, which engages with business users through solution-based selling; and Ecosystem Architecture Consulting that enable customers to build an optimized analytical ecosystems. It serves various industries comprising communications, ecommerce, financial services, government, gaming, healthcare, insurance, manufacturing, media and entertainment, oil and gas, retail, travel and transportation, and utilities. Teradata Corporation was founded in 1979 and is headquartered in Dayton, Ohio.

Super Micro Computer Company Profile

Super Micro Computer, Inc., together with its subsidiaries, develops and provides high performance server solutions based on modular and open architecture. It offers a range of server, storage, blade, workstation, and full rack solutions, as well as networking devices, server management software, and technology support and services. The company also provides a range of application optimized server solutions, including rackmount and blade server systems; and server subsystems and accessories comprising server boards, and chassis and power supplies, as well as other system accessories, including microprocessors, and memory and disc drives. In addition, it provides customer support services and hardware enhanced services. The company offers its products to data center, cloud computing, enterprise IT, big data, high performance computing, and Internet of Things/embedded markets. It sells its server systems, and server subsystems and accessories through direct sales force, as well as through distributors that comprise value added resellers and system integrators, and OEMs. The company has operations primarily in San Jose, California; the Netherlands; Taiwan; China; and Japan. Super Micro Computer, Inc. was founded in 1993 and is headquartered in San Jose, California.

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