Contrasting Teradata (NYSE:TDC) & Qualstar (OTCMKTS:QBAKD)

Teradata (NYSE:TDC) and Qualstar (OTCMKTS:QBAKD) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Risk and Volatility

Teradata has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500. Comparatively, Qualstar has a beta of 0.18, meaning that its stock price is 82% less volatile than the S&P 500.

Earnings and Valuation

This table compares Teradata and Qualstar”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teradata	$1.66 billion	1.80	$130.00 million	$4.36	7.28
Qualstar	$6.59 million	1.14	$70,000.00	N/A	N/A

Teradata has higher revenue and earnings than Qualstar.

Analyst Ratings

This is a summary of current recommendations and price targets for Teradata and Qualstar, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teradata	1	4	4	1	2.50
Qualstar	0	0	0	0	0.00

Teradata currently has a consensus target price of $35.67, suggesting a potential upside of 12.39%. Given Teradata’s stronger consensus rating and higher possible upside, equities analysts clearly believe Teradata is more favorable than Qualstar.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Teradata	24.93%	57.44%	9.15%
Qualstar	1.06%	N/A	N/A

Institutional and Insider Ownership

90.3% of Teradata shares are held by institutional investors. 1.0% of Teradata shares are held by company insiders. Comparatively, 37.5% of Qualstar shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Teradata beats Qualstar on 12 of the 14 factors compared between the two stocks.

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.

About Qualstar

Qualstar Corporation engages in power solutions and data storage systems businesses worldwide. The company operates through two segments, Power Solutions and Data Storage Systems. It provides data storage systems under the Qualstar brand and power solutions under the N2Power brand. The company designs, manufactures, and sells switching power supplies that are used to convert AC line voltage to DC voltages; or DC voltages to other DC voltages for use in various electronic equipment, such as telecommunications equipment, machine tools, routers, switches, wireless systems, and gaming devices. It also supports and sells data storage devices used to store, retrieve, and manage electronic data primarily in network computing environments. The company serves original equipment manufacturers, information technology departments, and lower and middle market companies through distributor and reseller network, distributors, and independent outside sales representatives. Qualstar Corporation was founded in 1984 and is based in Camarillo, California.