Contrasting Teradata (TDC) and Verisign (VRSN)
Teradata (NYSE: TDC) and Verisign (NASDAQ:VRSN) are both mid-cap technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.
Institutional & Insider Ownership
97.9% of Teradata shares are owned by institutional investors. 1.7% of Teradata shares are owned by company insiders. Comparatively, 0.9% of Verisign shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Teradata and Verisign’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Teradata||$2.32 billion||2.01||$125.00 million||$0.50||77.14|
|Verisign||$1.14 billion||9.93||$440.64 million||$3.70||31.09|
Verisign has lower revenue, but higher earnings than Teradata. Verisign is trading at a lower price-to-earnings ratio than Teradata, indicating that it is currently the more affordable of the two stocks.
This table compares Teradata and Verisign’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Teradata has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Verisign has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.
This is a summary of recent ratings for Teradata and Verisign, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Teradata presently has a consensus target price of $32.00, suggesting a potential downside of 17.03%. Verisign has a consensus target price of $106.33, suggesting a potential downside of 7.56%. Given Verisign’s stronger consensus rating and higher probable upside, analysts plainly believe Verisign is more favorable than Teradata.
Teradata Company Profile
Teradata Corporation is a provider of analytic data platforms, analytic applications and related services. The Company’s segments include Americas region (North America and Latin America) and International region (Europe, Middle East, Africa, Asia Pacific and Japan). Its offerings include analytics solutions, ecosystem architecture consulting and hybrid cloud solutions. These solutions include software and hardware technology components, such as data warehousing, big data, tools for data integration, data discovery and business intelligence. Its services include a range of offerings, including consulting to enable organizations design, optimize and manage their analytic and big data environments, either on-premises or in the cloud. Its consulting services provide expertise in data architecture services; cloud, including software as a service and analytics as a service; private cloud; managed services, and related installation services.
Verisign Company Profile
VeriSign, Inc. is a provider of domain name registry services and Internet security. The Company operates through Registry Services and Security Services segment. Registry Services ensure the security, stability and resiliency of Internet infrastructure and services, including the .com and .net domains, and operation of the root-zone maintainer functions for the core of the Internet’s Domain Name System (DNS). Security Services provides infrastructure assurance services consisting of Distributed Denial of Services (DDoS) Protection Services and Managed DNS Services. DDoS Protection Services supports online business continuity by providing monitoring and mitigation services against DDoS attacks. Managed DNS Services is a hosting service that delivers DNS resolution for the availability of Web-based systems.
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