Salesforce vs Teradata Which Is Superior?

Salesforce and Teradata are two major players in the technology industry, each offering unique products and solutions to their customers. Salesforce is a cloud-based software company that specializes in customer relationship management (CRM), while Teradata provides data warehousing and analytics solutions. Both companies are publicly traded on the stock market, with Salesforce experiencing strong growth in recent years and Teradata facing challenges with increased competition. Investors may be considering the performance of these stocks and evaluating which company offers the best investment opportunity.

Salesforce or Teradata?

When comparing Salesforce and Teradata, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Salesforce and Teradata.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Salesforce has a dividend yield of 0.34%, while Teradata has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Salesforce reports a 5-year dividend growth of 0.00% year and a payout ratio of 14.69%. On the other hand, Teradata reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Salesforce P/E ratio at 43.88 and Teradata's P/E ratio at 38.77. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Salesforce P/B ratio is 5.89 while Teradata's P/B ratio is 25.43.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Salesforce has seen a 5-year revenue growth of 1.16%, while Teradata's is 0.01%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Salesforce's ROE at 13.35% and Teradata's ROE at 84.54%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $352.98 for Salesforce and $32.46 for Teradata. Over the past year, Salesforce's prices ranged from $212.00 to $369.00, with a yearly change of 74.06%. Teradata's prices fluctuated between $24.02 and $49.44, with a yearly change of 105.83%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.