Teradata (NYSE: TDC) and Black Knight Financial Services (NYSE:BKFS) are both mid-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, risk, valuation, dividends and profitability.

Insider & Institutional Ownership

97.9% of Teradata shares are held by institutional investors. Comparatively, 44.7% of Black Knight Financial Services shares are held by institutional investors. 1.7% of Teradata shares are held by insiders. Comparatively, 30.8% of Black Knight Financial Services shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Teradata and Black Knight Financial Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teradata 3.01% 16.47% 6.07%
Black Knight Financial Services 16.64% 4.71% 4.71%

Earnings and Valuation

This table compares Teradata and Black Knight Financial Services’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Teradata $2.32 billion 2.04 $125.00 million $0.49 80.00
Black Knight Financial Services N/A N/A N/A $0.63 68.33

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Teradata and Black Knight Financial Services, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teradata 4 6 1 0 1.73
Black Knight Financial Services 0 1 6 0 2.86

Teradata presently has a consensus target price of $32.00, suggesting a potential downside of 18.37%. Black Knight Financial Services has a consensus target price of $46.50, suggesting a potential upside of 8.01%. Given Black Knight Financial Services’ stronger consensus rating and higher probable upside, analysts plainly believe Black Knight Financial Services is more favorable than Teradata.

Summary

Black Knight Financial Services beats Teradata on 6 of the 10 factors compared between the two stocks.

About Teradata

Teradata Corporation is a provider of analytic data platforms, analytic applications and related services. The Company’s segments include Americas region (North America and Latin America) and International region (Europe, Middle East, Africa, Asia Pacific and Japan). Its offerings include analytics solutions, ecosystem architecture consulting and hybrid cloud solutions. These solutions include software and hardware technology components, such as data warehousing, big data, tools for data integration, data discovery and business intelligence. Its services include a range of offerings, including consulting to enable organizations design, optimize and manage their analytic and big data environments, either on-premises or in the cloud. Its consulting services provide expertise in data architecture services; cloud, including software as a service and analytics as a service; private cloud; managed services, and related installation services.

About Black Knight Financial Services

Black Knight Financial Services, Inc. is a holding company. The Company, through its subsidiaries, provides integrated technology, workflow automation, and data and analytics to the mortgage and real estate industries. The Company’s segments include Technology, and Data and Analytics. The Company’s Technology segment offers software and hosting solutions that support loan servicing, loan origination and settlement services. The Technology segment provides applications and services, such as servicing technology and origination technology. Its Data and Analytics segment offers data and analytics solutions to the mortgage, real estate and capital markets industries. These solutions include property ownership data, lien data, servicing data, automated valuation models, collateral risk scores, prepayment and default models, lead generation and other data solutions.

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