Analyzing Dell Technologies (DVMT) and Teradata (TDC)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Dell Technologies -3.69% 27.01% 3.60%
Teradata -3.32% 14.76% 4.48%

Analyst Ratings

This is a summary of recent recommendations for Dell Technologies and Teradata, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dell Technologies 0 1 3 0 2.75
Teradata 2 7 5 0 2.21

Dell Technologies presently has a consensus price target of $113.00, suggesting a potential upside of 33.60%. Teradata has a consensus price target of $36.55, suggesting a potential downside of 8.98%. Given Dell Technologies’ stronger consensus rating and higher probable upside, equities analysts plainly believe Dell Technologies is more favorable than Teradata.

Earnings & Valuation

This table compares Dell Technologies and Teradata’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dell Technologies $78.66 billion 0.83 -$3.73 billion $6.17 13.71
Teradata $2.16 billion 2.26 -$67.00 million $0.81 49.57

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

Institutional & Insider Ownership

22.7% of Dell Technologies shares are held by institutional investors. Comparatively, 97.5% of Teradata shares are held by institutional investors. 46.0% of Dell Technologies shares are held by insiders. Comparatively, 1.2% of Teradata shares are held 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.

Volatility & Risk

Dell Technologies has a beta of -0.33, indicating that its stock price is 133% less volatile than the S&P 500. Comparatively, Teradata has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.

Summary

Teradata beats Dell Technologies on 8 of the 14 factors compared between the two stocks.

About Dell Technologies

Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports information technology (IT) products and services worldwide. It operates through three segments: Client Solutions Group (CSG), Infrastructure Solutions Group (ISG), and VMware. The CSG segment offers hardware, such as desktop personal computers, notebooks, and workstations; and branded peripherals, including monitors and projectors; third-party software and peripherals; and attached software, peripherals, and services comprising support and deployment, configuration, and extended warranty services. The ISG segment provides traditional and next-generation storage solutions consisting of flash arrays, scale-out files, object platforms, and other software solutions; and rack, blade, tower, and hyper scale servers. The VMware segment offers compute, cloud, mobility, networking and security infrastructure software, including software-defined data center products, such as vSphere, vSAN, VMware NSX, and vRealize products; VMware Cloud solution that enables customers to run, manage, connect, and secure applications across private and public clouds; and end-user computing products comprising Workspace ONE solution, which enables IT organizations to deliver access to applications, data, and devices. The company also provides cybersecurity solutions; intelligence-driven information security solutions; cloud-native platform for software development and IT operations; cloud-based integration services; cloud software and infrastructure-as-a-service solutions that enable customers to migrate, run, and manage mission-critical applications in cloud-based IT environments; and financing services. The company was formerly known as Denali Holding Inc. and changed its name to Dell Technologies Inc. in August 2016. Dell Technologies Inc. was founded in 1984 and is headquartered in Round Rock, Texas.

About Teradata

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.

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