In the rapidly evolving landscape of data management and analytics, Teradata Corporation (TDC) and Informatica Inc. (INFA) stand out as key players within the Software – Infrastructure industry. Both companies offer innovative solutions that cater to enterprises seeking to harness their data for actionable insights. With overlapping markets and distinct approaches to cloud integration and data management, I will analyze which of these two companies presents a more compelling investment opportunity. Join me as we delve into their strategies and performance to uncover the most intriguing choice for your portfolio.
Table of contents
Company Overview
Teradata Corporation Overview
Teradata Corporation (TDC) is a leader in enterprise analytics, providing a connected multi-cloud data platform that empowers organizations to harness their data comprehensively. Their flagship offering, Teradata Vantage, enables businesses to integrate various data sources and drive analytics initiatives while simplifying migration to cloud environments. Founded in 1979 and headquartered in San Diego, California, Teradata serves a diverse clientele across financial services, healthcare, and telecommunications, among others. The company emphasizes operationalizing analytical opportunities and delivering value through its consulting services, making it an essential partner for organizations aiming to enhance their data-driven decision-making processes.
Informatica Inc. Overview
Informatica Inc. (INFA), founded in 1993 and based in Redwood City, California, specializes in data management solutions powered by artificial intelligence. Their platform offers an extensive suite of products that unify and manage data across multi-cloud and hybrid environments, ensuring accurate and consistent data for analytics and governance. Informatica’s offerings include data integration, quality, and master data management tools, as well as compliance and business insights solutions. With a robust focus on enhancing data accessibility and usability, Informatica positions itself as a critical player for enterprises seeking to optimize their data strategies.
Key similarities and differences
Both Teradata and Informatica operate in the software infrastructure sector and provide solutions aimed at enhancing enterprise data management. However, Teradata focuses primarily on analytics and multi-cloud data integration, while Informatica emphasizes a broader array of data management services, including data quality and governance. This distinction highlights Teradata’s analytical prowess against Informatica’s comprehensive data management capabilities.
Income Statement Comparison
The following table presents a comparison of the most recent income statements for Teradata Corporation and Informatica Inc., providing insights into their financial performance.
| Metric | Teradata (TDC) | Informatica (INFA) |
|---|---|---|
| Market Cap | 2.72B | 7.54B |
| Revenue | 1.75B | 1.64B |
| EBITDA | 293M | 339M |
| EBIT | 193M | 199M |
| Net Income | 114M | 9.93M |
| EPS | 1.18 | 0.033 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In the latest fiscal year, Teradata reported a revenue of 1.75B, a slight decline from 1.83B in the previous year. However, its net income increased significantly from 62M to 114M, indicating improved cost management and operational efficiency. Conversely, Informatica’s revenue grew modestly from 1.60B to 1.64B, but it remains unprofitable, recording a net income of just 9.93M. The disparity in profitability between the two firms highlights the need for Informatica to enhance its margin management to achieve sustainable growth. Overall, Teradata demonstrates stronger financial health, while Informatica faces challenges in stabilizing its earnings.
Financial Ratios Comparison
The following table presents a comparison of key financial ratios between Teradata Corporation (TDC) and Informatica Inc. (INFA) based on the most recent fiscal year data.
| Metric | [Company A: TDC] | [Company B: INFA] |
|---|---|---|
| ROE | 85.71% | 0.43% |
| ROIC | 16.89% | 0.56% |
| P/E | 26.34 | -65.39 |
| P/B | 22.58 | 3.70 |
| Current Ratio | 0.81 | 1.82 |
| Quick Ratio | 0.79 | 1.82 |
| D/E | 4.33 | 0.81 |
| Debt-to-Assets | 33.80% | 36.28% |
| Interest Coverage | 7.21 | 0.87 |
| Asset Turnover | 1.03 | 0.31 |
| Fixed Asset Turnover | 9.07 | 8.75 |
| Payout ratio | 0% | 0% |
| Dividend yield | 0% | 0% |
Interpretation of Financial Ratios
In comparing TDC and INFA, TDC exhibits significantly stronger ratios, particularly in ROE, ROIC, and interest coverage, indicating robust profitability and effective capital management. Conversely, INFA’s negative P/E ratio raises concerns about its profitability. Additionally, TDC’s lower current and quick ratios suggest tighter liquidity, while INFA demonstrates better short-term financial stability. Investors should weigh these findings carefully against their risk tolerance and portfolio strategies.
Dividend and Shareholder Returns
Teradata Corporation (TDC) does not pay dividends, as evidenced by a dividend payout ratio of 0. Instead, it focuses on reinvesting profits to fuel growth, particularly in its high-tech sector. The absence of dividends aligns with a growth strategy, enabling TDC to allocate funds toward innovation and acquisition. The company also engages in share buybacks, which can enhance shareholder value by reducing outstanding shares.
Informatica Inc. (INFA) similarly refrains from paying dividends, reflecting a commitment to reinvestment given its current growth phase. The dividend payout ratio is negligible, and INFA channels resources into research and development. Share buybacks are also in play, aiming to create value for shareholders. Overall, both companies’ strategies prioritize long-term value creation over immediate returns.
Strategic Positioning
In the competitive landscape of Software – Infrastructure, Teradata Corporation (TDC) holds a market cap of $2.72B, while Informatica Inc. (INFA) leads with $7.54B. TDC’s focus on a connected multi-cloud data platform positions it well, but competitive pressure from INFA’s AI-powered solutions could challenge its market share. Both companies face technological disruptions as they adapt to evolving cloud environments and data management needs, emphasizing the importance of innovation and strategic partnerships in maintaining market relevance.
Stock Comparison
In this section, I will analyze the stock price movements of Teradata Corporation (TDC) and Informatica Inc. (INFA) over the past year, highlighting key dynamics and price fluctuations.
Trend Analysis
Teradata Corporation (TDC) Over the past year, TDC has experienced a significant price change of -32.6%, indicating a bearish trend. This trend is characterized by acceleration, with notable price fluctuations between a high of 48.99 and a low of 19.73. The standard deviation of 7.27 suggests considerable volatility. In the recent trend from September 14, 2025, to November 30, 2025, TDC saw a price increase of 35.41%, with a lower volatility of 3.04, indicating a more stable upward movement during this period.
Informatica Inc. (INFA) For INFA, the overall price change over the last year stands at -12.68%, also reflecting a bearish trend with acceleration. The stock fluctuated between a high of 38.48 and a low of 16.67, with a standard deviation of 4.46 indicating moderate volatility. In the recent trend from September 7, 2025, to November 23, 2025, INFA showed a minimal price change of 0.08%, suggesting a neutral trend with a trend slope of 0.0, which indicates stability in this timeframe despite recent seller dominance.
Analyst Opinions
Recent analyst recommendations for Teradata Corporation (TDC) show a consensus rating of B+, indicating a strong buy sentiment. Analysts highlight TDC’s robust return on equity (5) and positive discounted cash flow score (4), suggesting solid financial health and growth potential. Notably, analysts emphasize the company’s strategic positioning in data analytics, which could drive future revenues. In contrast, there are currently no recent recommendations for Informatica Inc. (INFA), leaving its outlook uncertain. Overall, the consensus for TDC is a buy for 2025, while INFA remains on the sidelines.
Stock Grades
In the current market landscape, it’s crucial to evaluate stock ratings to make informed investment decisions. Here are the latest grades for Teradata Corporation (TDC) and Informatica Inc. (INFA).
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 |
Informatica Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Guggenheim | downgrade | Neutral | 2025-08-07 |
| UBS | maintain | Neutral | 2025-08-07 |
| Baird | maintain | Neutral | 2025-05-28 |
| JP Morgan | downgrade | Neutral | 2025-05-28 |
| RBC Capital | maintain | Sector Perform | 2025-05-28 |
| Wolfe Research | downgrade | Peer Perform | 2025-05-28 |
| Wells Fargo | maintain | Equal Weight | 2025-05-28 |
| Truist Securities | downgrade | Hold | 2025-05-28 |
| RBC Capital | maintain | Sector Perform | 2025-05-27 |
| UBS | maintain | Neutral | 2025-05-16 |
Overall, TDC has seen a recent upgrade to “Market Outperform,” indicating positive sentiment, while INFA has faced multiple downgrades, suggesting a more cautious outlook. Keeping an eye on these trends can provide valuable insights for your investment decisions.
Target Prices
The consensus target prices from analysts indicate a positive outlook for both Teradata Corporation (TDC) and Informatica Inc. (INFA).
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Teradata Corp. | 24 | 24 | 24 |
| Informatica Inc. | 27 | 27 | 27 |
For Teradata Corporation, the target consensus of 24 is below its current price of 28.64, suggesting that the stock may be overvalued at this time. Meanwhile, Informatica Inc.’s target consensus of 27 is also above its current price of 24.79, indicating potential upside.
Strengths and Weaknesses
The following table presents an analysis of the strengths and weaknesses of Teradata Corporation (TDC) and Informatica Inc. (INFA).
| Criterion | Teradata Corporation (TDC) | Informatica Inc. (INFA) |
|---|---|---|
| Diversification | Moderate | Moderate |
| Profitability | Low (Net Margin: 6.5%) | Very Low (Net Margin: 0.6%) |
| Innovation | High (Strong R&D focus) | Moderate (AI Integration) |
| Global presence | Strong (Global client base) | Moderate (Primarily US) |
| Market Share | Moderate | Moderate |
| Debt level | High (Debt/Equity: 4.33) | Moderate (Debt/Equity: 0.81) |
Key takeaways indicate that Teradata has a stronger global presence and focus on innovation, albeit with significant debt. Conversely, Informatica shows lower profitability and has less global reach, highlighting potential volatility in its future performance.
Risk Analysis
The following table outlines key risks associated with Teradata Corporation (TDC) and Informatica Inc. (INFA):
| Metric | Teradata Corporation (TDC) | Informatica Inc. (INFA) |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Low | Moderate |
In assessing risks, Informatica faces significant operational and market risks, particularly given its high debt levels and fluctuating profitability. Teradata, while similarly exposed to market dynamics, has a more stable operational footing. Recent shifts in regulatory policies could pose challenges for both companies.
Which one to choose?
In analyzing Teradata Corporation (TDC) and Informatica Inc. (INFA), TDC exhibits stronger fundamentals, with a market cap of 3B and a solid B+ rating from analysts. Its gross profit margin stands at 60.5%, while its net income margin is 6.5%. In contrast, INFA’s performance has been less favorable, with a market cap of approximately 7.8B but negative net income margins and no current analyst ratings. Additionally, TDC’s recent stock trend shows a recovery of 35.4%, while INFA remains bearish, with a slight change of 0.08%.
Investors focused on value may prefer TDC due to its profitability and better risk metrics, while those seeking growth might be cautious with INFA’s current instability. However, both companies face risks, particularly from competition and market dependence.
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 Teradata Corporation and Informatica Inc. to enhance your investment decisions:
