In the dynamic world of technology, Gen Digital Inc. and Teradata Corporation stand out as key players in the software infrastructure industry. Gen Digital focuses on consumer cyber safety solutions, while Teradata specializes in multi-cloud data platforms for enterprise analytics. Their market overlap and innovation strategies make them compelling candidates for comparison. Join me as we explore which company presents the most promising opportunity for your investment portfolio in 2026.
Table of contents
Companies Overview
I will begin the comparison between Gen Digital Inc. and Teradata Corporation by providing an overview of these two companies and their main differences.
Gen Digital Inc. Overview
Gen Digital Inc. operates in the software infrastructure industry, focusing on consumer cyber safety solutions globally, including regions like the US, Europe, and Asia Pacific. Its product suite includes Norton 360, LifeLock identity protection, and Avira Security, aiming to protect devices and personal information from online threats. Headquartered in Tempe, Arizona, Gen Digital leverages a subscription model to deliver extensive cybersecurity and privacy services.
Teradata Corporation Overview
Teradata Corporation provides a multi-cloud data platform for enterprise analytics, serving sectors such as financial services, healthcare, and telecommunications. Its flagship product, Teradata Vantage, facilitates data integration and ecosystem simplification to support cloud migration and analytical operations. Based in San Diego, California, Teradata complements its platform offerings with consulting and maintenance services to optimize analytical infrastructure for global clients.
Key similarities and differences
Both companies operate in the technology sector within the software infrastructure industry, focusing on data and security solutions. Gen Digital targets individual consumers with cybersecurity and identity protection services, while Teradata serves enterprises by delivering data analytics platforms and consulting. Gen Digital’s business model centers on subscription services for personal security, whereas Teradata emphasizes multi-cloud platform integration and enterprise consulting, reflecting a divergence in client base and service scope.
Income Statement Comparison
The table below presents a side-by-side comparison of key income statement metrics for Gen Digital Inc. and Teradata Corporation for their most recent fiscal years.
| Metric | Gen Digital Inc. | Teradata Corporation |
|---|---|---|
| Market Cap | 16.1B | 2.8B |
| Revenue | 3.94B | 1.75B |
| EBITDA | 2.03B | 293M |
| EBIT | 1.61B | 193M |
| Net Income | 643M | 114M |
| EPS | 1.04 | 1.18 |
| Fiscal Year | 2025 | 2024 |
Income Statement Interpretations
Gen Digital Inc.
Gen Digital Inc. showed consistent revenue growth from $2.55B in 2021 to $3.93B in 2025, with net income increasing from $554M to $643M. Gross margin remained strong near 80%, while net margin held favorably around 16%. The latest fiscal year reflected moderate revenue growth at 3.55%, alongside a significant 44% EBIT increase and stable net margin expansion.
Teradata Corporation
Teradata Corporation’s revenue declined from $1.92B in 2021 to $1.75B in 2024, with net income falling from $147M to $114M. Despite lower top-line figures, gross margin stayed favorable at 60%, and net margin improved to 6.5%. The latest year saw a 4.5% revenue drop but a notable 31% rise in EBIT and a near doubling of net margin, indicating efficiency gains amid shrinking sales.
Which one has the stronger fundamentals?
Gen Digital demonstrates stronger fundamentals through sustained revenue and net income growth, high margins, and favorable profitability trends despite some interest expense concerns. Teradata shows margin improvements and EBIT growth but faces revenue and net income declines over the period, reflecting more mixed performance. Overall, Gen Digital’s larger scale and more consistent margin strength position it with comparatively robust fundamentals.
Financial Ratios Comparison
The table below presents the most recent financial ratios for Gen Digital Inc. and Teradata Corporation, offering a side-by-side view of key profitability, liquidity, leverage, efficiency, and dividend metrics for the fiscal year 2025 for GEN and 2024 for TDC.
| Ratios | Gen Digital Inc. (GEN) | Teradata Corporation (TDC) |
|---|---|---|
| ROE | 28.3% | 85.7% |
| ROIC | 7.8% | 16.9% |
| P/E | 25.4 | 26.3 |
| P/B | 7.19 | 22.58 |
| Current Ratio | 0.51 | 0.81 |
| Quick Ratio | 0.51 | 0.79 |
| D/E | 3.66 | 4.33 |
| Debt-to-Assets | 53.7% | 33.8% |
| Interest Coverage | 2.79 | 7.21 |
| Asset Turnover | 0.25 | 1.03 |
| Fixed Asset Turnover | 36.1 | 9.07 |
| Payout ratio | 48.7% | 0% |
| Dividend yield | 1.92% | 0% |
Interpretation of the Ratios
Gen Digital Inc.
Gen Digital shows strong profitability with a net margin of 16.34% and a favorable return on equity of 28.34%. However, liquidity ratios like current and quick ratios at 0.51 are weak, and leverage is high with a debt-to-equity ratio of 3.66 and debt-to-assets at 53.66%. The dividend yield is moderate at 1.92%, supported by a stable dividend per share, but payout and free cash flow coverage require monitoring due to elevated debt levels.
Teradata Corporation
Teradata reports a favorable return on equity of 85.71% and a solid return on invested capital of 16.89%. Its asset turnover at 1.03 and interest coverage ratio of 6.66 are also positive signals. However, liquidity remains a concern with current and quick ratios below 1. The company does not pay dividends, likely prioritizing reinvestment or growth, as evidenced by zero dividend yield and ongoing research and development expenses.
Which one has the best ratios?
Teradata presents a more balanced ratio profile with higher asset efficiency and better interest coverage, despite liquidity concerns. Gen Digital exhibits strong profitability but is burdened by weaker liquidity and higher leverage, alongside less favorable valuation multiples. Overall, Teradata’s ratios lean towards neutrality while Gen Digital’s appear slightly unfavorable.
Strategic Positioning
This section compares the strategic positioning of Gen Digital Inc. and Teradata Corporation including Market position, Key segments, and disruption:
Gen Digital Inc.
- Market leader in consumer cyber safety with global presence, facing competition in software infrastructure.
- Key segments include Cyber Safety, Identity and Fraud Protection, VPN, and Privacy solutions.
- Exposure to cyber threats drives continuous innovation in consumer cybersecurity solutions.
Teradata Corporation
- Focused on enterprise multi-cloud data platforms serving diverse industries globally, with moderate competitive pressure.
- Main drivers are multi-cloud data platform, consulting services, and recurring software and service revenues.
- Positioned around cloud data analytics platforms with ongoing integration of multi-cloud technologies.
Gen Digital Inc. vs Teradata Corporation Positioning
Gen Digital has a concentrated focus on consumer cybersecurity products, offering diverse privacy and identity protection services. Teradata pursues a diversified approach with a broad multi-cloud data analytics platform and consulting, targeting multiple industries globally.
Which has the best competitive advantage?
Teradata shows a very favorable moat with growing ROIC and strong value creation, indicating a durable competitive advantage. Gen Digital’s moat is very unfavorable with declining ROIC, signaling value destruction and weaker competitive positioning.
Stock Comparison
The stock price movements over the past year reveal a clear divergence in trading dynamics, with Gen Digital Inc. showing a steady bullish trend despite recent slowdown, while Teradata Corporation experienced an overall bearish trend but a strong recent rebound.
Trend Analysis
Gen Digital Inc. (GEN) posted a bullish trend over the past 12 months with a 17.89% price increase, though the pace of growth has decelerated. The stock ranged between 20.03 and 31.58, with moderate volatility (std deviation 2.59).
Teradata Corporation (TDC) showed a bearish trend over the same period with a 21.26% decline, but recent months saw a strong upturn with a 42.78% gain and accelerating momentum. The stock exhibited higher volatility (std deviation 5.63) and wider price fluctuations.
Comparing both, GEN delivered the highest market performance over the full year, despite TDC’s recent strong recovery, which may suggest differing risk profiles and market responses.
Target Prices
The current analyst consensus indicates moderate upside potential for both Gen Digital Inc. and Teradata Corporation.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Gen Digital Inc. | 32 | 31 | 31.5 |
| Teradata Corporation | 35 | 27 | 31 |
Analysts expect Gen Digital’s price to rise modestly from $26.1 to around $31.5, while Teradata’s consensus target of $31 suggests a slight increase from its current $29.77 price.
Analyst Opinions Comparison
This section compares analysts’ ratings and financial scores for Gen Digital Inc. and Teradata Corporation:
Rating Comparison
Gen Digital Inc. Rating
- Rating: B, assessed as very favorable overall.
- Discounted Cash Flow Score: 5, very favorable indicating strong future cash flow projections.
- ROE Score: 5, very favorable showing efficient profit generation from equity.
- ROA Score: 3, moderate efficiency in asset utilization.
- Debt To Equity Score: 1, very unfavorable, indicating high financial risk.
- Overall Score: 3, moderate financial standing.
Teradata Corporation Rating
- Rating: B+, also considered very favorable.
- Discounted Cash Flow Score: 4, favorable but below Gen Digital’s score.
- ROE Score: 5, equally very favorable with strong equity returns.
- ROA Score: 4, favorable asset usage higher than Gen Digital’s.
- Debt To Equity Score: 1, also very unfavorable, reflecting similar financial leverage concerns.
- Overall Score: 3, moderate financial standing matching Gen Digital.
Which one is the best rated?
Teradata holds a slightly higher rating of B+ compared to Gen Digital’s B, supported by a favorable ROA score and a strong, albeit slightly lower, discounted cash flow score. Both share moderate overall scores and unfavorable debt to equity scores.
Scores Comparison
Here is a comparison of the financial scores for Gen Digital Inc. and Teradata Corporation:
Gen Scores
- Altman Z-Score: 1.25, in distress zone indicating risk
- Piotroski Score: 6, average financial strength
TDC Scores
- Altman Z-Score: 0.81, in distress zone indicating higher risk
- Piotroski Score: 8, very strong financial strength
Which company has the best scores?
Teradata has a lower Altman Z-Score, indicating greater financial distress risk, but a much stronger Piotroski Score reflecting better financial health. Gen shows moderate Piotroski strength but less distress risk comparatively.
Grades Comparison
The following presents a detailed comparison of the recent grades assigned to Gen Digital Inc. and Teradata Corporation by reputable grading companies:
Gen Digital Inc. Grades
This table summarizes the latest grades and rating actions from top financial institutions for Gen Digital Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| RBC Capital | Maintain | Sector Perform | 2025-11-07 |
| Evercore ISI Group | Maintain | Outperform | 2025-11-07 |
| Morgan Stanley | Maintain | Equal Weight | 2025-09-02 |
| Barclays | Maintain | Equal Weight | 2025-08-08 |
| Wells Fargo | Maintain | Overweight | 2025-08-08 |
| RBC Capital | Maintain | Sector Perform | 2025-08-08 |
| Barclays | Maintain | Equal Weight | 2025-07-14 |
| RBC Capital | Maintain | Sector Perform | 2025-05-07 |
| Morgan Stanley | Maintain | Equal Weight | 2025-04-16 |
| RBC Capital | Maintain | Sector Perform | 2025-01-31 |
Gen Digital Inc. shows a consistent pattern of stable grades mainly around Sector Perform and Equal Weight, with occasional Outperform and Overweight ratings.
Teradata Corporation Grades
This table shows Teradata Corporation’s recent grades from leading financial graders:
| 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 Corporation displays a more mixed range of grades, fluctuating from Underweight to Overweight and Outperform, with some recent downward ratings from Barclays.
Which company has the best grades?
Gen Digital Inc. holds a stronger consensus with a “Buy” rating supported by 11 buys versus 9 holds and 1 sell, while Teradata’s consensus is “Hold” with a more balanced distribution including 14 buys but 25 holds and 8 sells. Gen Digital’s steadier and more positive grades may suggest a comparatively favorable outlook for investors.
Strengths and Weaknesses
Below is a comparison table highlighting key strengths and weaknesses of Gen Digital Inc. (GEN) and Teradata Corporation (TDC) based on the most recent financial and business data.
| Criterion | Gen Digital Inc. (GEN) | Teradata Corporation (TDC) |
|---|---|---|
| Diversification | Focused on Cyber Safety with limited Legacy | Broad product mix including recurring services, consulting, software licenses |
| Profitability | Moderate net margin (16.3%) and ROE (28.3%) but ROIC trend declining | Lower net margin (6.5%) but strong ROE (85.7%) and improving ROIC |
| Innovation | Legacy segment shrinking, innovation pressure evident | Growing recurring revenue streams and stable innovation in software and analytics |
| Global presence | Primarily US-focused with Cyber Safety services | Strong international presence with diversified data and analytics services |
| Market Share | Leading in core consumer security but facing competitive pressure | Solid position in data analytics market with durable competitive advantage |
Key takeaways: Teradata displays a stronger economic moat with growing profitability and diversified revenue streams, while Gen Digital suffers from declining ROIC and value destruction despite favorable net margin and ROE. Investors should weigh Teradata’s durable competitive advantage against Gen’s challenges in innovation and asset efficiency.
Risk Analysis
Below is a comparison of key risks for Gen Digital Inc. (GEN) and Teradata Corporation (TDC) based on the most recent data available.
| Metric | Gen Digital Inc. (GEN) | Teradata Corporation (TDC) |
|---|---|---|
| Market Risk | Moderate beta (1.08), some volatility in price range | Lower beta (0.57), less price volatility |
| Debt level | High debt-to-equity (3.66), debt to assets 53.7% (unfavorable) | Very high debt-to-equity (4.33), debt to assets 33.8% (neutral) |
| Regulatory Risk | Moderate, cybersecurity industry sensitive to privacy laws | Moderate, data analytics subject to data protection regulations |
| Operational Risk | Product integration and subscription retention challenges | Cloud migration complexity and service delivery risks |
| Environmental Risk | Low direct impact, limited exposure | Low direct impact, limited exposure |
| Geopolitical Risk | Global presence with exposure to multiple regions | Global presence, but slightly more concentrated |
Gen Digital faces significant financial risk due to its high leverage and liquidity concerns, reflected in its unfavorable ratios and distress-zone Altman Z-score. Teradata shows strong operational metrics but also carries heavy debt and a distress-zone bankruptcy risk, though with a very strong Piotroski score indicating solid financial health apart from leverage. Debt levels and financial stability are the most critical risks for both companies in 2026.
Which Stock to Choose?
Gen Digital Inc. (GEN) shows favorable income growth and profitability with a 16.34% net margin and 28.34% ROE, but unsteady financial ratios including high debt levels (debt-to-equity 3.66) and a slightly unfavorable global ratio stance. Its rating is very favorable with a B grade despite liquidity concerns and a declining ROIC indicating value destruction.
Teradata Corporation (TDC) maintains a favorable overall income statement with a 6.51% net margin and very strong ROE of 85.71%, supported by a neutral to favorable financial ratio profile and a B+ rating. The company demonstrates a very favorable MOAT with growing ROIC, though its debt remains relatively high and liquidity ratios are below 1.
Considering these factors, investors with a risk-tolerant or growth-oriented profile might find TDC’s strong ROE and improving profitability appealing, while risk-averse investors focusing on income stability and established ratings may view GEN’s consistent income growth and moderate rating as more suitable. Both stocks present contrasting profiles shaped by their debt structures and profitability trends.
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 Gen Digital Inc. and Teradata Corporation to enhance your investment decisions:
