Teradata vs SAP Which Performs Better?

Teradata Corporation and SAP SE are two leading companies in the field of data management and enterprise software solutions. Both companies have a strong presence in the technology sector and are listed on major stock exchanges. Teradata specializes in data warehousing and analytics, while SAP offers a wide range of applications for business operations and customer relations management. Investors often compare the performance of these two stocks to make informed investment decisions in the rapidly evolving tech industry.

Teradata or SAP?

When comparing Teradata and SAP, 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 SAP.

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 SAP has a dividend yield of 0.84%. 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, SAP reports a 5-year dividend growth of 8.83% year and a payout ratio of 82.11%.

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 19.71 and SAP's P/E ratio at 99.03. 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 16.90 while SAP's P/B ratio is 6.80.

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 0.09%, while SAP's is 0.27%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Teradata's ROE at 117.83% and SAP's ROE at 7.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $22.83 for Teradata and $282.66 for SAP. Over the past year, Teradata's prices ranged from $22.73 to $39.70, with a yearly change of 74.66%. SAP's prices fluctuated between $175.08 and $293.70, with a yearly change of 67.75%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.