Teradata (NYSE:TDC) & Amplitude (NASDAQ:AMPL) Financial Analysis

Amplitude (NASDAQ:AMPL) and Teradata (NYSE:TDC) are both small-cap business services companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, dividends, valuation and profitability.

Risk and Volatility

Amplitude has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Teradata has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.

Earnings and Valuation

This table compares Amplitude and Teradata”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amplitude	$299.27 million	4.15	-$94.32 million	($0.77)	-12.47
Teradata	$1.75 billion	1.19	$114.00 million	$1.17	18.46

Teradata has higher revenue and earnings than Amplitude. Amplitude is trading at a lower price-to-earnings ratio than Teradata, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Amplitude and Teradata’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amplitude	-31.52%	-32.24%	-21.13%
Teradata	6.51%	149.16%	8.58%

Analyst Ratings

This is a breakdown of current ratings and price targets for Amplitude and Teradata, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amplitude	0	4	6	1	2.73
Teradata	3	3	4	0	2.10

Amplitude presently has a consensus target price of $15.00, indicating a potential upside of 56.25%. Teradata has a consensus target price of $34.00, indicating a potential upside of 57.41%. Given Teradata’s higher possible upside, analysts plainly believe Teradata is more favorable than Amplitude.

Institutional & Insider Ownership

73.2% of Amplitude shares are held by institutional investors. Comparatively, 90.3% of Teradata shares are held by institutional investors. 4.8% of Amplitude shares are held by company insiders. Comparatively, 0.9% of Teradata shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Teradata beats Amplitude on 9 of the 15 factors compared between the two stocks.

About Amplitude

Amplitude, Inc., together with its subsidiaries, provides a digital analytics platform that analyzes customer behavior in the United States and internationally. It offers Amplitude Analytics, which provides real-time product data and reconstructed user visits; Amplitude Experiment, a solution that allows teams to test new capabilities and safely roll out new features; Amplitude CDP, an insight-driven solution that encompasses the data infrastructure, audience management, and data streaming capabilities; and Amplitude Session Replay used by product, marketing, and data teams to understand user behavior, diagnose product issues, and improve product outcomes. The company also provides customer support services related to initial implementation setup, ongoing support, and application training. It delivers its application over the Internet as a subscription service using a software-as-a-service model. The company was formerly known as Sonalight, Inc. and changed its name to Amplitude, Inc. in December 2014. Amplitude, Inc. was incorporated in 2011 and is headquartered in San Francisco, California.

About Teradata

Teradata Corporation, together with its subsidiaries, provides a connected multi-cloud data platform for enterprise analytics. The company offers Teradata Vantage, an open and connected platform designed to leverage data across an enterprise. Its business consulting services include support services for organizations to establish a data and analytic vision, enable a multi-cloud ecosystem architecture, and identify and operationalize analytical opportunities, as well as to ensure the analytical infrastructure delivers value. The company offers support and maintenance services. It serves clients in financial services, government, healthcare and life sciences, manufacturing, retail, telecommunications, and travel/transportation sectors through a direct sales force in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. Teradata Corporation was incorporated in 1979 and is headquartered in San Diego, California.