Teradata vs Microsoft

Teradata and Microsoft are two technology companies that have experienced significant growth in the stock market in recent years. While Teradata focuses on data analytics and management solutions, Microsoft is a global leader in software development and cloud services. Both companies have seen strong revenue growth and increased market share, but their stocks have performed differently in terms of valuation and stock price appreciation. Investors looking to diversify their tech portfolios may consider the strengths and weaknesses of each company before making investment decisions.

Teradata or Microsoft?

When comparing Teradata and Microsoft, 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 Teradata and Microsoft.

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. Teradata has a dividend yield of -%, while Microsoft has a dividend yield of 0.72%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Teradata reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Microsoft reports a 5-year dividend growth of 10.16% year and a payout ratio of 24.70%.

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 Teradata P/E ratio at 49.81 and Microsoft's P/E ratio at 35.31. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Teradata P/B ratio is 41.17 while Microsoft's P/B ratio is 11.59.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Teradata has seen a 5-year revenue growth of 0.01%, while Microsoft's is 0.99%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Teradata's ROE at 64.42% and Microsoft's ROE at 35.95%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $31.77 for Teradata and $415.26 for Microsoft. Over the past year, Teradata's prices ranged from $24.02 to $49.44, with a yearly change of 105.83%. Microsoft's prices fluctuated between $324.39 and $468.35, with a yearly change of 44.38%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.