Cray (CRAY) versus Teradata (TDC) Head to Head Contrast

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

Analyst Ratings

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This is a breakdown of recent recommendations and price targets for Cray and Teradata, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cray 0 0 5 0 3.00
Teradata 3 7 3 0 2.00

Cray currently has a consensus target price of $27.20, indicating a potential upside of 20.22%. Teradata has a consensus target price of $34.00, indicating a potential downside of 17.89%. Given Cray’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Cray is more favorable than Teradata.

Insider and Institutional Ownership

97.3% of Cray shares are held by institutional investors. Comparatively, 97.9% of Teradata shares are held by institutional investors. 4.0% of Cray shares are held by company insiders. Comparatively, 1.2% of Teradata shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Cray has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500. Comparatively, Teradata has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Cray -34.10% -8.51% -6.11%
Teradata -3.11% 15.54% 5.16%

Valuation and Earnings

This table compares Cray and Teradata’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cray $392.51 million 2.33 -$133.82 million ($1.01) -22.40
Teradata $2.16 billion 2.34 -$67.00 million $0.81 51.12

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

Summary

Teradata beats Cray on 9 of the 14 factors compared between the two stocks.

Cray Company Profile

Cray Inc., together with its subsidiaries, designs, develops, manufactures, markets, and services computing systems, and data analytics and artificial intelligence solutions. It operates through Supercomputing, Storage and Data Management, Maintenance and Support, and Engineering Services and Other segments. The company offers a range of Cray XC series supercomputers, including Cray XC40, Cray XC50, and Cray XC50-AC; Cray CS series supercomputers comprises Cray CS500 and Cray CS-Storm; and analytics products, such as Cray Urika-GX platform used for production-class big data analytics workloads. It also provides storage and data management products comprising cray clusterstor storage systems that embeds the Lustre parallel file system and other software in an optimal configuration; and Cray DataWarp applications accelerator, a DataWarp technology that addresses a problem experienced by supercomputing customers. In addition, the company offers custom engineering solutions; and customer support services consisting of hardware and software maintenance, applications support, installation project management, system installation and de-installation, site preparation, and technical training for its systems, as well as ancillary services in application consulting, third-party software support, site engineering, on-site analysts for defined projects, and specialized training. Cray Inc. sells its products through direct sales force and a partner network of global and regional resellers. It serves clients ranging from government agencies or funded research laboratories, academic institutions, and commercial entities in North America, South America, Asia, Europe, the Middle East, Australia, and Africa. The company was formerly known as Tera Computer Company and changed its name to Cray Inc. in 2000. Cray Inc. was founded in 1987 and is headquartered in Seattle, Washington.

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.

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