Comparing Teradata (NYSE:TDC) & Vertex (NASDAQ:VERX)

Vertex (NASDAQ:VERX) and Teradata (NYSE:TDC) are both mid-cap technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vertex	0.45%	29.00%	5.96%
Teradata	27.08%	47.25%	10.29%

Institutional and Insider Ownership

70.3% of Vertex shares are owned by institutional investors. Comparatively, 90.3% of Teradata shares are owned by institutional investors. 42.3% of Vertex shares are owned by company insiders. Comparatively, 1.0% of Teradata 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.

Risk & Volatility

Vertex has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Teradata has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vertex	1	7	7	0	2.40
Teradata	1	6	3	0	2.20

Vertex presently has a consensus target price of $17.50, suggesting a potential upside of 15.32%. Teradata has a consensus target price of $34.78, suggesting a potential upside of 4.93%. Given Vertex’s stronger consensus rating and higher possible upside, research analysts clearly believe Vertex is more favorable than Teradata.

Earnings and Valuation

This table compares Vertex 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
Vertex	$787.44 million	3.13	$7.21 million	$0.02	758.75
Teradata	$1.69 billion	1.82	$130.00 million	$4.75	6.98

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

About Vertex

Vertex, Inc., together with its subsidiaries, provides enterprise tax technology solutions for retail trade, wholesale trade, and manufacturing industries in the United States and internationally. The company offers tax determination; compliance and reporting, including workflow management tools, role-based security, and event logging; tax data management; document management; analytics and insights; pre-built integration that includes mapping data fields, and business logic and configurations; industry-specific solutions; and technology specific solutions, such as chain flow accelerator and SAP-specific tools. It provides implementation services, such as configuration, data migration and implementation, and support and training; and managed services, including tax return preparation, filing and tax payment, and notice management. The company sells its software products through software licenses and software as a service subscription. Vertex, Inc. was founded in 1978 and is headquartered in King of Prussia, Pennsylvania.

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.