Teradata vs Salesforce

Teradata and Salesforce are two prominent companies in the technology sector, both offering data management and analytics solutions. While Teradata focuses on providing services for enterprise data warehousing and analytics, Salesforce is known for its cloud-based customer relationship management software. Investors looking to compare the stocks of these companies should consider factors such as revenue growth, market share, and future potential in the rapidly evolving technology industry. Understanding the differences between Teradata and Salesforce can help investors make informed decisions about their investment portfolios.

Teradata or Salesforce?

When comparing Teradata and Salesforce, 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 Salesforce.

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 Salesforce has a dividend yield of 0.42%. 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, Salesforce reports a 5-year dividend growth of 0.00% year and a payout ratio of 13.71%.

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 Salesforce's P/E ratio at 49.36. 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 Salesforce's P/B ratio is 4.82.

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 Salesforce's is 1.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Teradata's ROE at 64.42% and Salesforce's ROE at 9.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $31.77 for Teradata and $288.00 for Salesforce. Over the past year, Teradata's prices ranged from $24.02 to $49.44, with a yearly change of 105.83%. Salesforce's prices fluctuated between $193.68 and $318.71, with a yearly change of 64.55%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.