In the dynamic world of software infrastructure, CyberArk Software Ltd. and Teradata Corporation stand out as key players. CyberArk specializes in cybersecurity solutions, while Teradata focuses on multi-cloud data platforms and analytics. Both companies serve overlapping industries like financial services and healthcare, leveraging innovation to address evolving enterprise needs. In this article, I will analyze their strengths and risks to help you decide which stock deserves a spot in your portfolio.
Table of contents
Companies Overview
I will begin the comparison between CyberArk Software Ltd. and Teradata Corporation by providing an overview of these two companies and their main differences.
CyberArk Software Ltd. Overview
CyberArk Software Ltd. focuses on developing and marketing software-based security solutions globally. Its mission centers on protecting privileged access and reducing risk from excessive privileges across cloud environments. Serving sectors like financial services, healthcare, and government, CyberArk offers a range of identity and access management services with a strong emphasis on secure credential management.
Teradata Corporation Overview
Teradata Corporation provides a connected multi-cloud data platform designed for enterprise analytics. Its flagship product, Teradata Vantage, enables data integration and ecosystem simplification to assist clients in their cloud migration journey. The company also offers business consulting and support services, serving industries such as financial services, healthcare, and telecommunications across multiple regions.
Key similarities and differences
Both companies operate in the Software – Infrastructure industry and serve similar sectors including financial services and healthcare. CyberArk emphasizes cybersecurity solutions focused on privileged access management, while Teradata specializes in data platforms and analytics services for multi-cloud environments. Their business models differ, with CyberArk concentrating on security software sales and services, and Teradata combining software platforms with consulting and support offerings.
Income Statement Comparison
This table compares key income statement metrics for CyberArk Software Ltd. and Teradata Corporation, reflecting their financial performance in the most recent fiscal year.
| Metric | CyberArk Software Ltd. | Teradata Corporation |
|---|---|---|
| Market Cap | 22.9B | 2.8B |
| Revenue | 1.00B | 1.75B |
| EBITDA | 29M | 293M |
| EBIT | -13M | 193M |
| Net Income | -93M | 114M |
| EPS | -2.12 | 1.18 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
CyberArk Software Ltd.
CyberArk’s revenue showed strong growth from 2020 to 2024, increasing by 115% overall, with a notable 33% rise in the latest year. Despite this, net income remained negative and deteriorated sharply over the period, reflecting persistent losses. Gross margins stayed high around 79%, but net margin was negative at -9.34% in 2024, indicating profitability challenges despite strong top-line expansion.
Teradata Corporation
Teradata experienced a slight revenue decline of about 4.7% over 2020-2024, including a 4.5% drop in the latest year. Nevertheless, net income remained positive, though it decreased by 11.6% overall. Margins were solid, with a 6.51% net margin and an 11% EBIT margin in 2024, showing operational profitability. The latest year saw a 31% EBIT growth and a 93% net margin improvement, signaling improved earnings efficiency despite stagnant revenue.
Which one has the stronger fundamentals?
Teradata’s fundamentals appear stronger due to consistent positive net income, favorable margins, and recent improvement in profitability metrics. CyberArk, while growing revenue rapidly and maintaining high gross margins, struggles with ongoing net losses and negative margins. Teradata’s ability to generate profits and improve margins suggests more stable earnings quality compared to CyberArk’s current financial position.
Financial Ratios Comparison
The following table presents the most recent key financial ratios for CyberArk Software Ltd. and Teradata Corporation, facilitating a direct comparison of their fiscal year 2024 performance metrics.
| Ratios | CyberArk Software Ltd. (CYBR) | Teradata Corporation (TDC) |
|---|---|---|
| ROE | -3.94% | 85.71% |
| ROIC | -2.85% | 16.89% |
| P/E | -157.49 | 26.34 |
| P/B | 6.21 | 22.58 |
| Current Ratio | 1.48 | 0.81 |
| Quick Ratio | 1.48 | 0.79 |
| D/E (Debt-to-Equity) | 0.012 | 4.33 |
| Debt-to-Assets | 0.009 | 0.34 |
| Interest Coverage | -17.90 | 7.21 |
| Asset Turnover | 0.30 | 1.03 |
| Fixed Asset Turnover | 51.11 | 9.07 |
| Payout Ratio | 0 | 0 |
| Dividend Yield | 0 | 0 |
Interpretation of the Ratios
CyberArk Software Ltd.
CyberArk’s financial ratios show several weaknesses, including negative net margin (-9.34%) and return on equity (-3.94%), indicating profitability challenges. The company has a low debt level and favorable fixed asset turnover, but concerns arise from poor interest coverage and asset turnover. CyberArk does not pay dividends, likely due to ongoing reinvestment in its growth and R&D focus.
Teradata Corporation
Teradata displays stronger profitability with a positive net margin of 6.51% and a high return on equity of 85.71%, reflecting efficient capital use. However, its price-to-earnings and price-to-book ratios are elevated, signaling potential overvaluation. The firm does not pay dividends, possibly emphasizing reinvestment or acquisitions, while maintaining moderate debt and favorable asset turnover ratios.
Which one has the best ratios?
Teradata’s ratios appear more favorable overall, driven by strong profitability and efficient asset use, despite concerns over valuation and liquidity. CyberArk shows more unfavorable profitability metrics and liquidity ratios but benefits from low leverage. While Teradata’s profile is neutral, CyberArk’s is slightly unfavorable, indicating Teradata has the comparatively better ratio set.
Strategic Positioning
This section compares the strategic positioning of CyberArk Software Ltd. and Teradata Corporation, including market position, key segments, and exposure to technological disruption:
CyberArk Software Ltd.
- Mid-large market cap $23B, faces competition in software security
- Focuses on software security solutions, SaaS, and privileged access management
- Exposed to cloud security demands and identity management trends
Teradata Corporation
- Smaller market cap $2.8B, operates in enterprise analytics
- Multi-cloud data platform, analytics, consulting services
- Positioned in cloud data platforms, ecosystem simplification
CyberArk Software Ltd. vs Teradata Corporation Positioning
CyberArk has a concentrated focus on privileged access security and identity management, leveraging SaaS growth, while Teradata offers a diversified multi-cloud analytics platform and consulting. CyberArk’s niche allows specialization; Teradata’s breadth supports broader enterprise needs.
Which has the best competitive advantage?
Teradata holds a very favorable moat with positive ROIC trends and value creation, indicating durable competitive advantage; CyberArk shows very unfavorable moat metrics with declining profitability and value destruction.
Stock Comparison
The past year has seen CyberArk Software Ltd. (CYBR) exhibit a strong bullish trend with a 77.27% price increase, albeit with recent deceleration and a short-term pullback; Teradata Corporation (TDC) experienced a bearish trend overall with a -21.26% decline but showed a notable recent recovery.
Trend Analysis
CyberArk Software Ltd. (CYBR) showed a bullish trend over the past 12 months with a 77.27% price increase and decelerating momentum. The stock reached a high of 520.78 and a low of 227.32, with significant volatility (std deviation 82.45).
Teradata Corporation (TDC) exhibited a bearish trend over the same period, declining by 21.26% with accelerating downward momentum. The price fluctuated between 19.73 and 38.67, with low volatility (std deviation 5.63).
Comparing trends, CyberArk delivered the highest market performance over the past year, outperforming Teradata despite recent short-term weakness.
Target Prices
Analysts present a clear target price consensus for both CyberArk Software Ltd. and Teradata Corporation.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| CyberArk Software Ltd. | 520 | 440 | 479.22 |
| Teradata Corporation | 35 | 27 | 31 |
The target consensus for CyberArk suggests a moderate upside from the current price of $453.65, indicating positive analyst sentiment. Teradata’s consensus target of $31 slightly exceeds its current price of $29.77, reflecting cautious optimism.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for CyberArk Software Ltd. and Teradata Corporation:
Rating Comparison
CyberArk Rating
- Rating: C- indicating a very favorable overall rating.
- Discounted Cash Flow Score: Moderate at 3 out of 5.
- ROE Score: Very unfavorable at 1 out of 5.
- ROA Score: Very unfavorable at 1 out of 5.
- Debt To Equity Score: Moderate at 2 out of 5.
- Overall Score: Very unfavorable at 1 out of 5.
Teradata Rating
- Rating: B+ indicating a very favorable overall rating.
- Discounted Cash Flow Score: Favorable at 4 out of 5.
- ROE Score: Very favorable at 5 out of 5.
- ROA Score: Favorable at 4 out of 5.
- Debt To Equity Score: Very unfavorable at 1 out of 5.
- Overall Score: Moderate at 3 out of 5.
Which one is the best rated?
Based on the provided data, Teradata has a higher overall rating (B+) and better scores in discounted cash flow, ROE, and ROA compared to CyberArk. However, CyberArk shows a slightly better debt-to-equity score. Teradata is therefore better rated overall.
Scores Comparison
The scores comparison between CyberArk Software Ltd. and Teradata Corporation is as follows:
CyberArk Scores
- Altman Z-Score: 6.52, indicating a safe zone and low bankruptcy risk.
- Piotroski Score: 3, classified as very weak financial strength.
Teradata Scores
- Altman Z-Score: 0.81, indicating distress zone and high bankruptcy risk.
- Piotroski Score: 8, classified as very strong financial strength.
Which company has the best scores?
Teradata shows a strong Piotroski Score reflecting robust financial health but a weak Altman Z-Score indicating bankruptcy risk. CyberArk has a very safe Altman Z-Score but a very weak Piotroski Score. Both show mixed signals in different metrics.
Grades Comparison
Here is a factual comparison of the latest grades for CyberArk Software Ltd. and Teradata Corporation:
CyberArk Software Ltd. Grades
The following table summarizes recent grades assigned by prominent financial institutions for CyberArk Software Ltd.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Oppenheimer | Maintain | Outperform | 2024-10-22 |
| Keybanc | Maintain | Overweight | 2024-10-18 |
| Mizuho | Maintain | Outperform | 2024-10-17 |
| BTIG | Maintain | Buy | 2024-10-09 |
| Barclays | Maintain | Overweight | 2024-10-07 |
| Wedbush | Maintain | Outperform | 2024-10-01 |
| Jefferies | Maintain | Buy | 2024-09-24 |
| DA Davidson | Maintain | Buy | 2024-08-09 |
| Rosenblatt | Maintain | Buy | 2024-08-09 |
| Susquehanna | Maintain | Positive | 2024-08-09 |
CyberArk’s grades consistently reflect a strong buy or outperform stance, indicating positive analyst sentiment over recent months.
Teradata Corporation Grades
The table below lists recent grades for Teradata Corporation from well-known grading 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 show a mixed picture, with several underweight and hold ratings alongside some buy and outperform opinions, reflecting moderate analyst confidence.
Which company has the best grades?
CyberArk Software Ltd. holds generally stronger and more consistent buy and outperform ratings compared to Teradata Corporation’s more varied and cautious grades. Investors may interpret CyberArk’s consensus as a clearer positive signal, whereas Teradata’s mixed ratings suggest a more cautious outlook.
Strengths and Weaknesses
The table below compares key strengths and weaknesses of CyberArk Software Ltd. (CYBR) and Teradata Corporation (TDC) based on their latest financial and strategic metrics.
| Criterion | CyberArk Software Ltd. (CYBR) | Teradata Corporation (TDC) |
|---|---|---|
| Diversification | Moderate: Revenue split between SaaS (469M) and Self Hosted Subscription (265M), plus maintenance and services | High: Diverse recurring revenue streams including consulting (248M), products (1.48B), services (1.19B), and subscriptions (289M) |
| Profitability | Weak: Negative net margin (-9.34%), negative ROIC (-2.85%), value destroying | Strong: Positive net margin (6.51%), high ROIC (16.89%), value creating |
| Innovation | Moderate: Growing SaaS segment but declining profitability suggests challenges | Strong: Continuous growth in data and analytics segments and improving ROIC |
| Global Presence | Moderate: Primarily software with some international reach | Strong: Significant international sales contributing to revenue |
| Market Share | Niche player in cybersecurity software | Established player in data analytics and services with strong recurring revenue |
Key takeaways: Teradata demonstrates a solid competitive position with diversified revenue, growing profitability, and a durable moat. CyberArk shows promising SaaS growth but struggles with profitability and value destruction, indicating higher investment risk.
Risk Analysis
Below is a comparative table outlining key risks for CyberArk Software Ltd. (CYBR) and Teradata Corporation (TDC) as of 2024:
| Metric | CyberArk Software Ltd. (CYBR) | Teradata Corporation (TDC) |
|---|---|---|
| Market Risk | Moderate (Beta 0.915) | Lower (Beta 0.57) |
| Debt level | Very low (D/E 0.01) | High (D/E 4.33) |
| Regulatory Risk | Moderate (Global operations) | Moderate (US focus) |
| Operational Risk | Moderate (Software security) | Moderate (Cloud platform) |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate (Israeli HQ) | Low (US HQ) |
CyberArk’s main risks stem from its moderate market sensitivity and operational challenges in cybersecurity, while maintaining a very strong balance sheet with minimal debt. Teradata faces higher financial risk due to its significant leverage, combined with a lower beta indicating less market volatility. Teradata’s financial distress risk is elevated given its Altman Z-score in the distress zone, despite a strong Piotroski score, whereas CyberArk is financially stable but operationally challenged. I advise caution with Teradata’s debt burden and monitoring CyberArk’s profitability issues.
Which Stock to Choose?
CyberArk Software Ltd. (CYBR) shows a strong revenue growth of 33.1% in 2024 but suffers from negative profitability with a -9.34% net margin and declining returns on equity and invested capital. Its debt levels are low, and its rating is very favorable despite mixed financial ratios.
Teradata Corporation (TDC) presents moderate revenue decline but maintains positive profitability with a 6.51% net margin and high returns on equity (85.71%) and invested capital (16.89%). It carries moderate debt, reflected in a neutral overall financial ratios evaluation, and holds a very favorable rating.
Investors seeking growth might find CyberArk’s expanding revenues and low debt appealing despite its current profitability challenges, while those prioritizing stable returns and financial efficiency could view Teradata’s positive income metrics and value creation as more favorable. The choice could depend on an investor’s risk tolerance and preference for growth versus quality.
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 CyberArk Software Ltd. and Teradata Corporation to enhance your investment decisions:
