In today’s fast-evolving technology landscape, choosing the right software infrastructure stock can be challenging. CrowdStrike Holdings, Inc. (CRWD) and Teradata Corporation (TDC) both operate in the software infrastructure industry but target distinct niches—cybersecurity and multi-cloud data analytics, respectively. Their innovation strategies and market approaches offer unique growth opportunities. This article will help you identify which company could be the better addition to your investment portfolio.
Table of contents
Companies Overview
I will begin the comparison between CrowdStrike and Teradata by providing an overview of these two companies and their main differences.
CrowdStrike Overview
CrowdStrike Holdings, Inc. specializes in cloud-delivered protection for endpoints and cloud workloads, offering services such as threat intelligence, managed security, and Zero Trust identity protection. Founded in 2011 and based in Austin, Texas, CrowdStrike operates primarily through subscription sales of its Falcon platform. It serves a global customer base and is positioned as a leader in the software infrastructure industry with a market cap of $114B.
Teradata Overview
Teradata Corporation, established in 1979 and headquartered in San Diego, California, delivers a connected multi-cloud data platform for enterprise analytics called Teradata Vantage. The company supports clients by simplifying data ecosystems and aiding cloud migration, complemented by business consulting and maintenance services. Teradata serves multiple sectors worldwide through a direct sales force and holds a market cap of $2.8B in the software infrastructure sector.
Key similarities and differences
Both CrowdStrike and Teradata operate in the software infrastructure industry, focusing on cloud-based solutions for enterprise clients. However, CrowdStrike emphasizes cybersecurity and threat protection via subscription-based models, while Teradata concentrates on data analytics platforms and consulting services. Their business models differ in scale and market capitalization, with CrowdStrike commanding a significantly larger market presence and employee base than Teradata.
Income Statement Comparison
Below is a comparison of key income statement figures for CrowdStrike Holdings, Inc. and Teradata Corporation for their most recent fiscal years.
| Metric | CrowdStrike Holdings, Inc. | Teradata Corporation |
|---|---|---|
| Market Cap | 114.4B | 2.8B |
| Revenue | 3.95B | 1.75B |
| EBITDA | 295M | 293M |
| EBIT | 81M | 193M |
| Net Income | -19M | 114M |
| EPS | -0.08 | 1.18 |
| Fiscal Year | 2025 | 2024 |
Income Statement Interpretations
CrowdStrike Holdings, Inc.
Over 2021-2025, CrowdStrike’s revenue surged by 352%, with net income growing 79% overall despite recent volatility. Gross margin remains strong at 74.9%, though operating expenses grew in line with revenue, pressuring EBIT margin to a neutral 2%. In 2025, revenue growth accelerated 29%, but net income turned negative, reflecting margin compression and higher costs.
Teradata Corporation
From 2020 to 2024, Teradata’s revenue declined slightly by 4.7%, with net income falling 12%. However, its gross margin of 60.5% and EBIT margin of 11% are favorable, supported by effective cost control. In 2024, revenue dipped 4.5%, yet EBIT and net margin improved substantially, signaling enhanced profitability despite top-line challenges.
Which one has the stronger fundamentals?
CrowdStrike shows robust top-line growth and expanding gross margins but struggles with negative net margins recently due to rising expenses. Teradata exhibits stable profitability with favorable margins and improving EBIT despite declining revenue. Both have 57% favorable income statement metrics, yet their fundamental strengths differ: growth and scale for CrowdStrike, profitability and margin stability for Teradata.
Financial Ratios Comparison
This table presents a side-by-side comparison of key financial ratios for CrowdStrike Holdings, Inc. and Teradata Corporation, based on their most recent fiscal year data.
| Ratios | CrowdStrike Holdings, Inc. (2025) | Teradata Corporation (2024) |
|---|---|---|
| ROE | -0.59% | 85.71% |
| ROIC | 0.70% | 16.89% |
| P/E | -5056 | 26.34 |
| P/B | 29.71 | 22.58 |
| Current Ratio | 1.67 | 0.81 |
| Quick Ratio | 1.67 | 0.79 |
| D/E | 0.24 | 4.33 |
| Debt-to-Assets | 9.07% | 33.80% |
| Interest Coverage | -4.58 | 7.21 |
| Asset Turnover | 0.45 | 1.03 |
| Fixed Asset Turnover | 4.76 | 9.07 |
| Payout ratio | 0% | 0% |
| Dividend yield | 0% | 0% |
Interpretation of the Ratios
CrowdStrike Holdings, Inc.
CrowdStrike shows a mixed financial profile with favorable liquidity ratios and low leverage, but negative profitability metrics such as net margin and return on equity, indicating operational challenges. The company’s price-to-earnings ratio is unusually favorable due to negative earnings, reflecting high growth expectations. CrowdStrike does not pay dividends, consistent with its reinvestment strategy in R&D and growth.
Teradata Corporation
Teradata displays strong profitability ratios including a high return on equity and return on invested capital, supported by solid interest coverage and asset turnover. However, its liquidity ratios are weak, indicating potential short-term financial constraints. Like CrowdStrike, Teradata does not pay dividends, likely prioritizing reinvestment and acquisitions to support its multi-cloud data platform expansion.
Which one has the best ratios?
Both companies receive a neutral overall evaluation with equal proportions of favorable and unfavorable ratios. CrowdStrike’s strengths lie in liquidity and low debt, while Teradata excels in profitability and operational efficiency but shows weaker liquidity. The choice depends on whether investors prioritize growth investment or profitability and operational metrics.
Strategic Positioning
This section compares the strategic positioning of CrowdStrike and Teradata, including market position, key segments, and exposure to technological disruption:
CrowdStrike Holdings, Inc.
- Leading cloud-delivered endpoint protection, facing moderate competitive pressure in cybersecurity.
- Key segments: subscriptions to Falcon platform and cloud modules, professional services growing steadily.
- Positioned in cybersecurity with cloud delivery; faces disruption risks but leverages cloud and AI trends.
Teradata Corporation
- Focused multi-cloud data platform provider with moderate competitive pressure in analytics software.
- Key segments: recurring product and service revenues, consulting, subscription software licenses.
- Positioned in enterprise analytics and multi-cloud; adapts via ecosystem simplification and migration.
CrowdStrike Holdings, Inc. vs Teradata Corporation Positioning
CrowdStrike pursues a concentrated strategy focused on cloud security subscriptions and services, while Teradata adopts a more diversified approach across analytics, consulting, and recurring revenues. CrowdStrike benefits from high cloud specialization; Teradata from multi-sector data integration.
Which has the best competitive advantage?
Teradata shows a very favorable moat with ROIC well above WACC and a strong growth trend, indicating durable competitive advantage. CrowdStrike’s moat is slightly unfavorable despite growing ROIC, reflecting challenges in value creation despite profitability improvements.
Stock Comparison
The stock prices of CrowdStrike Holdings, Inc. and Teradata Corporation have shown contrasting dynamics over the past 12 months, with CrowdStrike demonstrating strong gains despite recent declines, while Teradata experienced an overall downturn followed by a notable recovery.
Trend Analysis
CrowdStrike Holdings, Inc. exhibited a bullish trend over the past year with a 45.71% price increase, though this growth has decelerated recently, showing a 16.41% decline in the last quarter. The stock’s volatility is high, with prices ranging from 217.89 to 543.01.
Teradata Corporation’s stock followed a bearish trend over the year, falling 21.26%, but recently reversed course with a 42.78% gain. The stock shows low volatility and an accelerating trend in its recent upward movement.
Comparing the two, CrowdStrike delivered the highest market performance over the full 12-month period, despite its recent short-term weakness, whereas Teradata has shown promising recovery from a lower base.
Target Prices
Analysts present a clear consensus on target prices for CrowdStrike Holdings, Inc. and Teradata Corporation.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| CrowdStrike Holdings, Inc. | 706 | 353 | 553.47 |
| Teradata Corporation | 35 | 27 | 31 |
The target consensus for CrowdStrike suggests significant upside potential compared to its current price of $453.88, while Teradata’s consensus price of $31 closely aligns with its current trading price of $29.77, indicating moderate growth expectations.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for CrowdStrike Holdings, Inc. and Teradata Corporation:
Rating Comparison
CRWD Rating
- Rating: C, considered very favorable by analysts.
- Discounted Cash Flow Score: 4, indicating favorable valuation based on future cash flow.
- ROE Score: 1, very unfavorable, showing weak profit generation from shareholders’ equity.
- ROA Score: 1, very unfavorable, indicating poor asset utilization to generate earnings.
- Debt To Equity Score: 3, moderate financial risk with balanced debt levels.
- Overall Score: 2, moderate overall financial standing.
TDC Rating
- Rating: B+, considered very favorable by analysts.
- Discounted Cash Flow Score: 4, indicating favorable valuation based on future cash flow.
- ROE Score: 5, very favorable, showing strong profit generation from shareholders’ equity.
- ROA Score: 4, favorable, indicating efficient asset utilization to generate earnings.
- Debt To Equity Score: 1, very unfavorable, suggesting high financial risk due to debt levels.
- Overall Score: 3, moderate overall financial standing.
Which one is the best rated?
Teradata holds a better overall rating (B+) and higher scores in ROE and ROA, reflecting superior profitability and asset use. However, it scores poorly on debt-to-equity, indicating higher financial risk compared to CrowdStrike’s more balanced debt profile.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for both companies:
CRWD Scores
- Altman Z-Score: 12.38, safely in the safe zone indicating very low bankruptcy risk.
- Piotroski Score: 4, reflecting average financial strength and investment potential.
TDC Scores
- Altman Z-Score: 0.81, in the distress zone indicating high bankruptcy risk.
- Piotroski Score: 8, indicating very strong financial health and value potential.
Which company has the best scores?
CRWD has a much stronger Altman Z-Score, signaling financial safety, while TDC has a superior Piotroski Score, implying stronger financial health. Each excels in a different score based solely on the provided data.
Grades Comparison
Here is a comparison of the recent grades assigned to CrowdStrike Holdings, Inc. and Teradata Corporation by reputable grading companies:
CrowdStrike Holdings, Inc. Grades
The table below summarizes recent grades for CrowdStrike from multiple financial institutions:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | Maintain | Buy | 2026-01-13 |
| BTIG | Maintain | Buy | 2026-01-13 |
| Keybanc | Downgrade | Sector Weight | 2026-01-12 |
| Berenberg | Upgrade | Buy | 2026-01-09 |
| Stephens & Co. | Maintain | Overweight | 2025-12-18 |
| Morgan Stanley | Maintain | Equal Weight | 2025-12-18 |
| Freedom Capital Markets | Upgrade | Buy | 2025-12-11 |
| Citigroup | Maintain | Buy | 2025-12-04 |
| Goldman Sachs | Maintain | Buy | 2025-12-04 |
| Scotiabank | Maintain | Sector Outperform | 2025-12-03 |
CrowdStrike’s grades mostly reflect positive sentiment with several “Buy” ratings and a few upgrades, although Keybanc downgraded it to “Sector Weight.”
Teradata Corporation Grades
The table below presents recent grades for Teradata from recognized financial firms:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | Maintain | Underweight | 2026-01-12 |
| RBC Capital | Maintain | Sector Perform | 2026-01-05 |
| Morgan Stanley | Maintain | Overweight | 2025-12-17 |
| Citizens | Upgrade | Market Outperform | 2025-11-10 |
| Barclays | Maintain | Underweight | 2025-11-05 |
| TD Cowen | Maintain | Hold | 2025-11-05 |
| Evercore ISI Group | Maintain | Outperform | 2025-11-05 |
| UBS | Maintain | Neutral | 2025-08-06 |
| Guggenheim | Maintain | Buy | 2025-05-07 |
| Barclays | Maintain | Underweight | 2025-04-21 |
Teradata’s grades are more mixed, with a notable number of “Underweight” ratings but also some “Outperform” and “Buy” evaluations.
Which company has the best grades?
CrowdStrike consistently receives stronger grades, including multiple “Buy” and “Overweight” ratings, indicating higher analyst confidence. In contrast, Teradata shows a more cautious outlook with several “Underweight” and “Hold” grades. This divergence in grades could influence investors’ perceptions of growth and risk profiles between the two companies.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for CrowdStrike Holdings, Inc. (CRWD) and Teradata Corporation (TDC) based on recent financial and strategic data.
| Criterion | CrowdStrike Holdings, Inc. (CRWD) | Teradata Corporation (TDC) |
|---|---|---|
| Diversification | Moderate: Mainly cybersecurity subscriptions with growing professional services segment | High: Diverse data analytics, consulting, and recurring software services |
| Profitability | Weak: Negative net margin (-0.49%), negative ROE (-0.59%), low ROIC (0.7%) | Strong: Positive net margin (6.51%), high ROE (85.7%), strong ROIC (16.9%) |
| Innovation | Strong: Rapid growth in subscription revenues, improving ROIC trend (+114%) | Moderate: Stable recurring revenues, solid product innovation in analytics |
| Global presence | Growing: Expanding subscription base globally | Established: Significant international and US market penetration |
| Market Share | Growing in cybersecurity cloud market | Established leader in data analytics and warehousing |
Key takeaways: CrowdStrike shows impressive revenue growth and innovation but struggles with profitability and value creation. Teradata excels in profitability and durable competitive advantage, supported by diversified revenue streams and strong market presence. Investors should weigh growth potential against current earnings stability.
Risk Analysis
Below is a comparative overview of key risks for CrowdStrike Holdings, Inc. (CRWD) and Teradata Corporation (TDC) based on the latest financial and market data from 2025-2026.
| Metric | CrowdStrike Holdings, Inc. (CRWD) | Teradata Corporation (TDC) |
|---|---|---|
| Market Risk | Moderate beta (1.03) indicates average market sensitivity. | Lower beta (0.57) suggests less volatility relative to the market. |
| Debt level | Low leverage (D/E 0.24) with good debt-to-assets (9.07%) ratio. | High leverage (D/E 4.33) with moderate debt-to-assets (33.8%). |
| Regulatory Risk | Moderate; operates globally in cybersecurity, facing data/privacy regulations. | Moderate; multi-cloud data platform exposed to data compliance rules. |
| Operational Risk | Medium; rapid growth and platform dependency could affect stability. | Medium; integration of cloud services and consulting may pose execution risks. |
| Environmental Risk | Low; primarily software-based with limited direct environmental impact. | Low; similar software services with limited environmental footprint. |
| Geopolitical Risk | Moderate; global cyber threats and geopolitical tensions may impact operations. | Moderate; international client base exposed to geopolitical uncertainties. |
The most impactful risks are Teradata’s high debt level posing financial strain and CrowdStrike’s operational risks amid fast expansion. CrowdStrike’s stable debt profile and market positioning reduce financial risk, but profitability concerns remain. Teradata faces bankruptcy risk indicated by its low Altman Z-score despite a strong Piotroski score, signaling caution. Investors should weigh these factors carefully with an emphasis on risk management.
Which Stock to Choose?
CrowdStrike Holdings, Inc. (CRWD) shows strong revenue growth of 29.39% in 2025 and favorable gross margin of 74.92%, though profitability remains challenged with a negative net margin of -0.49% and returns on equity and assets below zero. Its debt levels are low and financial ratios present a balanced mix of favorable and unfavorable signals, resulting in a neutral overall ratio assessment and a slightly unfavorable economic moat due to ROIC below WACC despite improving profitability. The company holds a very favorable rating with moderate overall scores but weak return metrics.
Teradata Corporation (TDC) reported a slight revenue decline of -4.53% in 2024 but maintains favorable profitability metrics including a 6.51% net margin, strong ROE at 85.71%, and an improving EBIT margin of 11.03%. Its debt ratios are relatively high with debt-to-equity rated unfavorable, yet it benefits from a very favorable economic moat reflecting substantial value creation with ROIC well above WACC. Ratings are very favorable overall, supported by strong profitability and financial strength scores despite some liquidity concerns.
For investors prioritizing growth and favorable income statement trends, CRWD might appear more appealing given its robust revenue expansion and improving profitability trajectory, although its financial ratios and moat suggest caution. Conversely, TDC could be more attractive to investors valuing stability, strong return on equity, and demonstrated economic moat despite recent revenue contraction and higher leverage. The choice might depend on the investor’s risk tolerance and strategic focus.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of CrowdStrike Holdings, Inc. and Teradata Corporation to enhance your investment decisions:
