Teradata vs Snowflake Which Performs Better?

Teradata and Snowflake are both prominent players in the data warehousing and analytics industry. Teradata, a legacy player with decades of experience in data management, has a robust customer base and a strong reputation for reliable performance. On the other hand, Snowflake, a newcomer in the market, has quickly gained popularity for its cloud-based data warehousing solution and innovative architecture. Both companies have seen significant growth in their stock prices, but investors are divided on which stock presents a better investment opportunity.

Teradata or Snowflake?

When comparing Teradata and Snowflake, 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 Snowflake.

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 Snowflake has a dividend yield of -%. 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, Snowflake 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 Teradata P/E ratio at 37.85 and Snowflake's P/E ratio at -49.54. 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 24.83 while Snowflake's P/B ratio is 19.07.

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 Snowflake's is 14.98%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Teradata's ROE at 84.54% and Snowflake's ROE at -26.85%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $32.08 for Teradata and $165.73 for Snowflake. Over the past year, Teradata's prices ranged from $24.02 to $49.44, with a yearly change of 105.83%. Snowflake's prices fluctuated between $107.13 and $237.72, with a yearly change of 121.90%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.