Critical Review: Teradata (NYSE:TDC) and Onespan (NASDAQ:OSPN)

Teradata (NYSE:TDC) and Onespan (NASDAQ:OSPN) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Teradata and Onespan, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teradata	1	5	3	0	2.22
Onespan	0	3	2	0	2.40

Teradata currently has a consensus price target of $36.12, suggesting a potential upside of 13.20%. Onespan has a consensus price target of $24.00, suggesting a potential upside of 11.16%. Given Teradata’s higher possible upside, equities research analysts clearly believe Teradata is more favorable than Onespan.

Valuation and Earnings

This table compares Teradata and Onespan”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teradata	$1.66 billion	1.78	$130.00 million	$4.75	6.72
Onespan	$243.18 million	3.28	$72.90 million	$1.81	11.93

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

Volatility & Risk

Teradata has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Onespan has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500.

Insider & Institutional Ownership

90.3% of Teradata shares are owned by institutional investors. Comparatively, 95.5% of Onespan shares are owned by institutional investors. 1.0% of Teradata shares are owned by insiders. Comparatively, 2.0% of Onespan shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Teradata	27.08%	47.25%	10.29%
Onespan	27.52%	15.96%	11.19%

Summary

Onespan beats Teradata on 8 of the 14 factors compared between the two stocks.

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.

About Onespan

OneSpan Inc., together with its subsidiaries, designs, develops, and markets digital solutions for identity, authentication, and secure digital agreements worldwide. The company offers OneSpan Sign, a range of e-signature requirements for occasional agreement to processing tens of thousands of transactions; OneSpan Cloud Authentication, a cloud-based multifactor authentication solution that supports a range of authentication options, including biometrics, push notification, and visual cryptograms for transaction data security, SMS, and hardware authenticators; and OneSpan Identity Verification, which enables banks and financial institutions identity verification services. It also provides Mobile Security Suite, a software development kit that protect mobile transactions; Digipass Authenticators, consisting of a wide variety of authentication devices; authentication servers that provides a range of strong authentication utilities and solutions designed to allow organizations to securely authenticate users and transactions; and Digipass FX1 BIO, a physical passkey with fingerprint scan built for the workforce authentication market. In addition, it offers Virtual Room, a purpose-built, high-assurance solution that blends the simplicity of a consumer video collaboration app with high-assurance identity and authentication security; OneSpan Notary, an online notary solution developed for organizations with in-house notaries; and OneSpan Trust Vault, a blockchain-based decentralized digital storage solution that helps organizations meet compliance, regulatory, and chain of custody requirements for critical documents. It sells its solutions through its direct sales force, as well as through distributors, resellers, systems integrators, and original equipment manufacturers. The company was formerly known as VASCO Data Security International, Inc. and changed its name to OneSpan Inc. in May 2018. OneSpan Inc. was founded in 1991 and is headquartered in Boston, Massachusetts.