In the dynamic world of technology, data-centric companies like Snowflake Inc. and Teradata Corporation are making significant waves. Both operate within the software sector, focusing on data management and analytics, yet they adopt distinct innovation strategies. Snowflake’s cloud-based platform contrasts with Teradata’s multi-cloud approach, showcasing their unique market positions. As we delve into this comparison, I will help you determine which company presents the more compelling investment opportunity for your portfolio.
Table of contents
Company Overview
Snowflake Inc. Overview
Snowflake Inc. is a leading provider of a cloud-based data platform that enables organizations to consolidate their data into a single source of truth. Founded in 2012 and headquartered in Bozeman, Montana, the company’s mission is to empower businesses with actionable insights by leveraging their data. With its innovative Data Cloud platform, Snowflake facilitates data-driven applications and enhances data sharing across various industries. The company has rapidly expanded its market presence and currently boasts a market capitalization of approximately $76.6B, reflecting strong investor confidence in its growth potential.
Teradata Corporation Overview
Teradata Corporation specializes in providing a connected multi-cloud data platform aimed at enhancing enterprise analytics. Established in 1979 and based in San Diego, California, Teradata’s mission is to simplify and optimize data environments for its clients. The company’s flagship offering, Teradata Vantage, integrates multiple data sources to support organizations in their cloud migration journey. With a market capitalization of around $2.9B, Teradata serves a diverse range of sectors, including financial services, healthcare, and telecommunications, demonstrating a solid commitment to delivering value through advanced analytics.
Key similarities and differences
Both Snowflake and Teradata operate in the technology sector, focusing on data management and analytics. However, Snowflake emphasizes a cloud-native architecture for data sharing and application development, while Teradata centers on providing a multi-cloud platform with consulting services for enterprise analytics. This distinction highlights their respective approaches to meeting customer needs in the evolving data landscape.
Income Statement Comparison
The following table summarizes the income statements for Snowflake Inc. and Teradata Corporation, focusing on key financial metrics from their most recent fiscal years.
| Metric | Snowflake Inc. (SNOW) | Teradata Corporation (TDC) |
|---|---|---|
| Market Cap | 76.55B | 2.87B |
| Revenue | 3.63B | 1.75B |
| EBITDA | -1.10B | 0.29B |
| EBIT | -1.28B | 0.19B |
| Net Income | -1.29B | 0.11B |
| EPS | -3.86 | 1.18 |
| Fiscal Year | 2025 | 2024 |
Interpretation of Income Statement
In the latest fiscal year, Snowflake’s revenue increased to 3.63B, marking significant growth compared to previous years, but it continues to report substantial net losses, with a net income of -1.29B. This indicates ongoing challenges in achieving profitability. Teradata, on the other hand, reported stable revenue at 1.75B, with a positive net income of 0.11B, reflecting effective cost management and operational efficiency. The contrasting performance highlights Snowflake’s aggressive growth strategy, which may bear higher risks, while Teradata demonstrates a more stable, albeit slower, growth trajectory.
Financial Ratios Comparison
In this section, I provide a comparative overview of the most recent financial metrics for Snowflake Inc. (SNOW) and Teradata Corporation (TDC). This analysis focuses on key financial ratios that investors should consider when evaluating these companies.
| Metric | [Company A: SNOW] | [Company B: TDC] |
|---|---|---|
| ROE | -42.86% | 85.71% |
| ROIC | -25.32% | 16.89% |
| P/E | -46.97 | 26.34 |
| P/B | 20.13 | 22.58 |
| Current Ratio | 1.75 | 0.81 |
| Quick Ratio | 1.75 | 0.79 |
| D/E | 0.90 | 4.33 |
| Debt-to-Assets | 29.72% | 33.80% |
| Interest Coverage | -527.73 | 7.21 |
| Asset Turnover | 0.40 | 1.03 |
| Fixed Asset Turnover | 5.53 | 9.07 |
| Payout Ratio | 0% | 0% |
| Dividend Yield | 0% | 0% |
Interpretation of Financial Ratios
The financial ratios reveal stark contrasts between SNOW and TDC. SNOW shows negative returns on equity and invested capital, indicating challenges in profitability, while TDC’s robust ROE reflects strong performance. SNOW’s high P/B ratio suggests overvaluation relative to its book value, contrasting with TDC’s more modest valuation. The significant debt levels in TDC, as evidenced by its D/E ratio, raise concerns about financial risk, despite its healthy interest coverage. Investors should weigh these factors carefully when considering their investment strategies.
Dividend and Shareholder Returns
Snowflake Inc. (SNOW) does not pay dividends, which is likely due to its focus on reinvesting in growth and innovation during its high-growth phase. The negative net income per share of -3.86 USD further supports this strategy. However, Snowflake does engage in share buybacks, indicating a commitment to enhancing shareholder value.
In contrast, Teradata Corporation (TDC) also refrains from paying dividends, prioritizing capital expenditures and R&D. Although it has positive net income, it maintains its reinvestment approach, aligning with long-term shareholder value creation. Both companies’ strategies suggest a potential for sustainable growth despite the absence of direct cash returns.
Strategic Positioning
Snowflake Inc. (SNOW) currently holds a significant market share in the cloud-based data platform sector, with a market capitalization of approximately $76.6B. Its competitive edge is bolstered by its innovative Data Cloud platform, which allows diverse organizations to centralize data for actionable insights. Teradata Corporation (TDC), with a market cap of around $2.87B, faces competitive pressure from Snowflake, especially in enterprise analytics services. Both companies are navigating technological disruptions, with a strong emphasis on multi-cloud capabilities and data integration strategies to meet evolving customer demands.
Stock Comparison
In this section, I will analyze the stock price movements and trading dynamics of Snowflake Inc. (SNOW) and Teradata Corporation (TDC) over the past year, focusing on key price changes that have shaped the market sentiment around these companies.
Trend Analysis
Snowflake Inc. (SNOW) has experienced a price change of +19.61% over the past year, indicating a bullish trend. The highest price recorded was 274.88, while the lowest was 108.56, showcasing significant volatility with a standard deviation of 42.41. Additionally, the recent trend from September 21, 2025, to December 7, 2025, shows a slight decline of -0.74%, but the overall trend remains positive with an acceleration noted in the broader timeframe.
Teradata Corporation (TDC), on the other hand, has faced a price decline of -36.95% over the past year, marking a bearish trend. The stock’s price has fluctuated between a high of 48.99 and a low of 19.73, with a standard deviation of 7.15, indicating a degree of volatility. In the recent period from September 21, 2025, to December 7, 2025, TDC has rebounded with a notable increase of +37.18%, although this does not overturn the overall negative trajectory.
In summary, while SNOW shows a strong upward trajectory, TDC’s recovery in recent months must be tempered with the recognition of its overall downward trend.
Analyst Opinions
Recent analyst recommendations for Snowflake Inc. (SNOW) indicate a cautious stance, with a rating of C- reflecting concerns over its financial metrics. Analysts suggest holding due to low scores in return on equity and assets. Conversely, Teradata Corporation (TDC) has garnered a more favorable B+ rating, with analysts recommending a buy based on strong performance in discounted cash flow and return on equity. The consensus for SNOW is to hold, while TDC is viewed as a buy for the current year.
Stock Grades
In this section, I present the latest stock grades for two companies, Snowflake Inc. (SNOW) and Teradata Corporation (TDC), based on reliable data from recognized grading companies.
Snowflake Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Stifel | Maintain | Buy | 2025-12-04 |
| DA Davidson | Maintain | Buy | 2025-12-04 |
| Morgan Stanley | Maintain | Overweight | 2025-12-04 |
| Deutsche Bank | Maintain | Buy | 2025-12-04 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-12-04 |
| Baird | Maintain | Outperform | 2025-12-04 |
| BTIG | Maintain | Buy | 2025-12-04 |
| Keybanc | Maintain | Overweight | 2025-12-04 |
| Scotiabank | Maintain | Sector Outperform | 2025-12-04 |
| Rosenblatt | Maintain | Buy | 2025-12-04 |
Teradata Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citizens | Upgrade | Market Outperform | 2025-11-10 |
| Evercore ISI Group | Maintain | Outperform | 2025-11-05 |
| Barclays | Maintain | Underweight | 2025-11-05 |
| TD Cowen | Maintain | Hold | 2025-11-05 |
| UBS | Maintain | Neutral | 2025-08-06 |
| Guggenheim | Maintain | Buy | 2025-05-07 |
| Barclays | Maintain | Underweight | 2025-04-21 |
| Citizens Capital Markets | Maintain | Market Perform | 2025-03-18 |
| JMP Securities | Maintain | Market Perform | 2025-02-13 |
| RBC Capital | Maintain | Sector Perform | 2025-02-12 |
Overall, the stock grades for both companies indicate a generally positive sentiment, with multiple “Buy” and “Outperform” ratings for Snowflake Inc. and a recent upgrade for Teradata Corporation. This reflects a stable outlook for investors considering these stocks.
Target Prices
The consensus target prices for Snowflake Inc. and Teradata Corporation reflect optimistic expectations from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Snowflake Inc. | 325 | 230 | 282.25 |
| Teradata Corp. | 24 | 24 | 24 |
Analysts expect Snowflake Inc. to reach a target consensus of 282.25, which is significantly higher than its current price of 228.68. Teradata Corporation’s target consensus aligns with its current trading price of 30.19, indicating stability.
Strengths and Weaknesses
Below is a comparative analysis of the strengths and weaknesses of Snowflake Inc. (SNOW) and Teradata Corporation (TDC).
| Criterion | Snowflake Inc. (SNOW) | Teradata Corporation (TDC) |
|---|---|---|
| Diversification | Limited focus on cloud data solutions | Diverse multi-cloud data platform |
| Profitability | Negative profit margins (-35.45%) | Positive profit margins (6.51%) |
| Innovation | Strong focus on data analytics technology | Established but slower innovation pace |
| Global presence | Growing international reach | Established presence in multiple regions |
| Market Share | Emerging leader in cloud data services | Strong in enterprise analytics, but smaller market share |
| Debt level | Low debt-to-assets ratio (29.72%) | High debt-to-equity ratio (4.33) |
Key takeaways from this analysis indicate that while Snowflake shows potential for growth with its innovative data solutions, it currently faces profitability challenges. Conversely, Teradata has established profitability but carries a higher debt burden, which could impact its financial flexibility.
Risk Analysis
The following table outlines the key risks associated with Snowflake Inc. (SNOW) and Teradata Corporation (TDC).
| Metric | Snowflake Inc. | Teradata Corporation |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | High | Moderate |
| Operational Risk | High | Low |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Moderate | High |
Both companies face significant risks, particularly in market and regulatory areas. Snowflake has a high operational risk due to its ongoing losses, while Teradata’s financial leverage may expose it to market volatility.
Which one to choose?
When comparing Snowflake Inc. (SNOW) and Teradata Corporation (TDC), the fundamental performance metrics reveal notable differences. Snowflake exhibits a gross profit margin of 66.5% but struggles with negative net profit margins and significant losses. Its stock trend remains bullish but has shown volatility with a recent price decline of 0.74%. Analysts rate it a C-, indicating concerns about its profitability and cash flow.
Conversely, Teradata presents a more stable picture with a gross profit margin of 60.5% and a positive net income of $114M in its latest fiscal year. TDC’s stock has recently rebounded with a price increase of 37.2%, and it holds a B+ rating, reflecting stronger financial health and operational efficiency.
Investors focused on growth may prefer Snowflake for its high revenue potential, while those prioritizing stability and profitability may favor Teradata. It’s important to consider risks such as market dependency and competition in the data analytics sector.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Snowflake Inc. and Teradata Corporation to enhance your investment decisions:
