Snowflake vs Teradata Which Is More Promising?

Snowflake and Teradata are two prominent players in the data warehousing and analytics industry. Snowflake, a cloud-based data warehousing company, has seen tremendous growth and enthusiasm from investors since its IPO in 2020. Teradata, a longtime leader in the industry, has faced challenges adapting to the shift towards cloud-based solutions. Investors are closely watching the competition between these two companies as they each strive to capture market share and prove their value in the rapidly evolving data analytics market.

Snowflake or Teradata?

When comparing Snowflake 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 Snowflake 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. Snowflake has a dividend yield of -%, while Teradata has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Snowflake reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 Snowflake P/E ratio at -49.54 and Teradata's P/E ratio at 37.85. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Snowflake P/B ratio is 19.07 while Teradata's P/B ratio is 24.83.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Snowflake has seen a 5-year revenue growth of 14.98%, while Teradata's is 0.01%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Snowflake's ROE at -26.85% and Teradata's ROE at 84.54%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $165.73 for Snowflake and $32.08 for Teradata. Over the past year, Snowflake's prices ranged from $107.13 to $237.72, with a yearly change of 121.90%. 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.