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

Institutional & Insider Ownership

99.4% of Computer Programs and Systems shares are held by institutional investors. 1.7% of Teradata Corporation shares are held by company insiders. Comparatively, 3.7% of Computer Programs and Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Teradata Corporation and Computer Programs and Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teradata Corporation 3.01% 16.47% 6.07%
Computer Programs and Systems 2.32% 10.01% 4.63%

Valuation and Earnings

This table compares Teradata Corporation and Computer Programs and Systems’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Teradata Corporation $2.32 billion 1.87 $125.00 million $0.49 73.12
Computer Programs and Systems $267.27 million 1.46 $3.89 million $0.45 63.22

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Teradata Corporation and Computer Programs and Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teradata Corporation 4 9 2 0 1.87
Computer Programs and Systems 1 3 1 0 2.00

Teradata Corporation presently has a consensus price target of $31.67, indicating a potential downside of 11.62%. Computer Programs and Systems has a consensus price target of $29.40, indicating a potential upside of 3.34%. Given Computer Programs and Systems’ stronger consensus rating and higher possible upside, analysts plainly believe Computer Programs and Systems is more favorable than Teradata Corporation.

Risk & Volatility

Teradata Corporation has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Computer Programs and Systems has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500.

Dividends

Computer Programs and Systems pays an annual dividend of $1.20 per share and has a dividend yield of 4.2%. Teradata Corporation does not pay a dividend. Computer Programs and Systems pays out 266.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Teradata Corporation beats Computer Programs and Systems on 11 of the 16 factors compared between the two stocks.

Teradata Corporation 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.

Computer Programs and Systems Company Profile

Computer Programs and Systems, Inc. (CPSI) is a provider of healthcare information technology (IT) solutions for rural and community hospitals, and post-acute care facilities. The Company’s segments include acute care EHR, post-acute care EHR, and TruBridge, Rycan, and other outsourcing. Its Acute Care EHR segment consists of acute care software solutions and supports sales generated by its subsidiaries, Evident, LLC (Evident) and Healthland Inc. (Healthland). Its Post-acute Care EHR segment consists of post-acute care software solutions and support sales generated by American HealthTech, Inc. (AHT). Its TruBridge, Rycan, and Other Outsourcing segment primarily consists of business management, consulting and managed IT services sales generated by TruBridge, LLC (TruBridge) and the sale of Rycan Technologies, Inc.’s (Rycan’s) revenue cycle management workflow and automation software.

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