Financial Survey: Fitbit (FIT) versus Teradata (TDC)

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

Earnings & Valuation

This table compares Fitbit and Teradata’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fitbit $1.62 billion 0.68 -$277.19 million ($0.65) -8.08
Teradata $2.16 billion 2.17 -$67.00 million $0.81 47.52

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

Insider & Institutional Ownership

61.7% of Fitbit shares are held by institutional investors. Comparatively, 98.1% of Teradata shares are held by institutional investors. 19.8% of Fitbit shares are held by insiders. Comparatively, 1.2% of Teradata 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 target prices for Fitbit and Teradata, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fitbit 3 10 4 0 2.06
Teradata 3 6 4 0 2.08

Fitbit presently has a consensus target price of $5.80, suggesting a potential upside of 10.48%. Teradata has a consensus target price of $36.00, suggesting a potential downside of 6.47%. Given Fitbit’s higher probable upside, equities research analysts plainly believe Fitbit is more favorable than Teradata.

Profitability

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

Net Margins Return on Equity Return on Assets
Fitbit -19.05% -19.17% -10.92%
Teradata -3.32% 14.76% 4.48%

Volatility and Risk

Fitbit has a beta of 1.89, suggesting that its stock price is 89% more volatile than the S&P 500. Comparatively, Teradata has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.

Summary

Teradata beats Fitbit on 9 of the 12 factors compared between the two stocks.

About Fitbit

Fitbit, Inc., a technology company, provides health solutions in the United States and internationally. The company offers a line of devices, including Fitbit Surge, Fitbit Blaze, Fitbit Charge 2, Alta HR, Alta, Fitbit Flex 2, Fitbit One, and Fitbit Zip activity trackers; Fitbit Ionic smartwatches; Fitbit Aria 2 Wi-Fi smart scales; and a range of accessories, such as bands and frames for its devices, as well as Fitbit Flyer, a wireless headphone designed for fitness. It also offers Fitbit online dashboard and mobile apps that sync automatically with and display real-time data from its wearable devices; and Fitbit Coach that offers exercise programs through personal trainer and yoga apps. The company sells its products through consumer electronics and specialty, e-commerce, mass merchant, department store, club, and sporting goods and outdoors retailers; wireless carriers; distributors; and Fitbit.com, an online store, as well as directly to consumers. The company was formerly known as Healthy Metrics Research, Inc. and changed its name to Fitbit, Inc. in October 2007. Fitbit, Inc. was founded in 2007 and is headquartered in San Francisco, California.

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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