In today’s rapidly evolving tech landscape, the competition between data management and storage companies is fierce. I will compare Teradata Corporation (TDC) and Pure Storage, Inc. (PSTG), both key players in the technology sector. While Teradata focuses on multi-cloud data analytics, Pure Storage excels in innovative data storage solutions. Analyzing their strategies and market positions will help us determine which company holds more promise for investors seeking growth in the tech industry.
Table of contents
Company Overview
Teradata Corporation Overview
Teradata Corporation (TDC) is a key player in the software infrastructure sector, offering a connected multi-cloud data platform designed for enterprise analytics. Founded in 1979 and headquartered in San Diego, California, Teradata provides solutions that enable organizations to harness their data effectively. Its flagship product, Teradata Vantage, facilitates data integration and analytics across various sources, supporting clients in their cloud migration journeys. With a focus on sectors such as financial services, healthcare, and telecommunications, Teradata emphasizes operationalizing analytical opportunities through comprehensive consulting and support services. As of 2025, Teradata boasts a market cap of $2.54B, reflecting its established position in a competitive market.
Pure Storage, Inc. Overview
Pure Storage, Inc. (PSTG) specializes in data storage technologies, providing innovative products and services that enhance data management and protection. Established in 2009 and based in Mountain View, California, Pure Storage’s offerings include FlashArray and FlashBlade solutions tailored to diverse storage needs, from traditional workloads to AI-ready infrastructures. The company promotes an evergreen storage subscription model and integrates its Purity software across its product range to deliver enterprise-class services. With a robust market cap of $26.69B, Pure Storage continues to expand its influence in the computer hardware industry, focusing on high-performance storage solutions.
Key Similarities and Differences
Both companies operate within the technology sector, focusing on data management and analytics. However, Teradata primarily emphasizes multi-cloud analytics and consulting services, while Pure Storage concentrates on innovative storage hardware and software solutions. Their business models differ significantly, with Teradata leaning towards enterprise analytics and cloud migration, whereas Pure Storage focuses on high-performance data storage and subscription services.
Income Statement Comparison
The following table provides a comparative overview of the income statements for Teradata Corporation (TDC) and Pure Storage, Inc. (PSTG) for their most recent fiscal years.
| Metric | TDC | PSTG |
|---|---|---|
| Revenue | 1.75B | 3.17B |
| EBITDA | 293M | 282M |
| EBIT | 193M | 156M |
| Net Income | 114M | 107M |
| EPS | 1.18 | 0.33 |
Interpretation of Income Statement
In the most recent year, TDC’s revenue decreased slightly from 1.83B to 1.75B, while PSTG’s revenue grew from 2.83B to 3.17B, indicating strong market demand. TDC’s net income increased significantly from 62M to 114M, reflecting improved operational efficiency and margin stability. In contrast, PSTG’s net income was slightly down from 61M to 107M, suggesting pressure on margins despite revenue growth. The overall trends suggest TDC is regaining profitability, while PSTG must manage costs to maintain its earnings trajectory.
Financial Ratios Comparison
In the following table, I present a comparative analysis of the latest financial metrics for Teradata Corporation (TDC) and Pure Storage, Inc. (PSTG). This will help us assess their financial health and performance.
| Metric | TDC | PSTG |
|---|---|---|
| ROE | 85.71% | 8.17% |
| ROIC | 16.89% | 2.45% |
| P/E | 26.34 | 206.90 |
| P/B | 22.58 | 16.90 |
| Current Ratio | 0.81 | 1.61 |
| Quick Ratio | 0.79 | 1.58 |
| D/E | 4.33 | 0.22 |
| Debt-to-Assets | 33.80% | 7.09% |
| Interest Coverage | 7.21 | 10.91 |
| Asset Turnover | 1.03 | 0.80 |
| Fixed Asset Turnover | 9.07 | 5.21 |
| Payout Ratio | 0% | 0% |
| Dividend Yield | 0% | 0% |
Interpretation of Financial Ratios
The analysis reveals that TDC exhibits significantly higher Return on Equity (ROE) and Return on Invested Capital (ROIC), indicating superior profitability and efficient capital use. However, its high debt-to-equity ratio (4.33) raises concerns regarding leverage and risk. Conversely, PSTG maintains a healthier current ratio (1.61) and lower debt levels, suggesting better liquidity and financial stability, although its profitability ratios are lower. Investors should weigh TDC’s potential for growth against its risk profile.
Dividend and Shareholder Returns
Both Teradata Corporation (TDC) and Pure Storage, Inc. (PSTG) do not pay dividends, reflecting a strategy focused on reinvestment for growth and innovation. TDC has consistently maintained a zero dividend payout ratio, utilizing its cash flow for capital expenditures and operational needs. Similarly, PSTG prioritizes R&D and expansion, opting for share buybacks to enhance shareholder value. While these approaches may present short-term risks, they align with a long-term vision for sustainable growth, suggesting potential for future value creation for shareholders.
Strategic Positioning
In the competitive landscape of data solutions, Teradata Corporation (TDC) holds a modest market share, primarily in enterprise analytics, with its multi-cloud platform gaining traction. Conversely, Pure Storage, Inc. (PSTG) leads in data storage technology, benefiting from a robust product portfolio that addresses diverse enterprise needs. Both companies face competitive pressure from emerging players and technological disruptions, necessitating continuous innovation to maintain their market positions.
Stock Comparison
In this section, I will analyze the weekly stock price movements of Teradata Corporation (TDC) and Pure Storage, Inc. (PSTG), highlighting key price dynamics and trends observed over the past year.
Trend Analysis
Teradata Corporation (TDC) Over the past year, TDC’s stock has experienced a significant decline of -38.82%. This bearish trend indicates a downward movement, with notable acceleration in the price decrease. The highest price recorded was 48.99, while the lowest reached 19.73. The stock has demonstrated increased volatility, with a standard deviation of 7.41, suggesting fluctuations in price are more pronounced.
In the recent analysis period from September 7, 2025, to November 23, 2025, TDC’s stock has shown a slight recovery, with a percentage change of +26.7%, and a trend slope of 0.51. This recent improvement, however, does not alter the overall bearish outlook.
Pure Storage, Inc. (PSTG) In contrast, PSTG has exhibited a remarkable bullish trend over the past year, with a percentage change of +127.31%. This acceleration in price movement reflects strong investor interest and confidence. The highest price reached was 98.7, while the lowest was 35.66. The volatility is also notable here, with a standard deviation of 13.48.
During the recent period from September 7, 2025, to November 23, 2025, PSTG’s stock has continued on an upward trajectory, with a percentage change of +2.31% and a trend slope of 0.56. This reinforces the overall bullish trend despite a slight deceleration in the recent analysis.
In summary, TDC is currently facing a bearish trend with ongoing challenges, while PSTG shows strong bullish momentum, making it a compelling option for investors looking for growth opportunities.
Analyst Opinions
Recent analyst recommendations indicate a mixed sentiment for Teradata Corporation (TDC) and Pure Storage, Inc. (PSTG). TDC holds a “B+” rating, with analysts citing strong return on equity (5) and discounted cash flow (4) as key strengths, suggesting a buy consensus. On the other hand, PSTG has a “B-” rating, where analysts highlight concerns regarding its price-to-earnings ratio (1) and overall score (2), leaning towards a hold recommendation. Overall, the consensus for TDC is buy, while PSTG remains on a cautious hold.
Stock Grades
In the current market, it’s essential to stay informed about stock ratings from reliable grading companies. Here’s a summary of the latest grades for two companies: Teradata Corporation (TDC) and Pure Storage, Inc. (PSTG).
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 |
Pure Storage, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Morgan Stanley | maintain | Equal Weight | 2025-11-17 |
| JP Morgan | maintain | Overweight | 2025-11-17 |
| Citigroup | maintain | Buy | 2025-10-21 |
| Evercore ISI Group | maintain | Outperform | 2025-10-20 |
| Raymond James | maintain | Outperform | 2025-10-17 |
| JP Morgan | maintain | Overweight | 2025-10-16 |
| Evercore ISI Group | maintain | Outperform | 2025-09-26 |
| Wells Fargo | maintain | Overweight | 2025-09-26 |
| Guggenheim | maintain | Buy | 2025-09-26 |
| Needham | maintain | Buy | 2025-09-26 |
Overall, Teradata has seen an upgrade to “Market Outperform,” signaling positive sentiment among some analysts, while Pure Storage maintains a stable outlook with consistent ratings from multiple firms. This indicates a generally optimistic trend for both stocks, although caution is advised as individual company performance can vary significantly.
Target Prices
The consensus target prices for the following companies indicate strong analyst expectations.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Teradata Corporation (TDC) | 24 | 24 | 24 |
| Pure Storage, Inc. (PSTG) | 110 | 70 | 89.91 |
For Teradata Corporation, the target consensus is at 24, slightly below its current price of 26.7. In contrast, Pure Storage has a consensus target of 89.91, indicating a significant upside potential compared to its current price of 81.6.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Teradata Corporation (TDC) and Pure Storage, Inc. (PSTG) based on recent financial metrics and performance indicators.
| Criterion | Teradata Corporation (TDC) | Pure Storage, Inc. (PSTG) |
|---|---|---|
| Diversification | Moderate | High |
| Profitability | Low (Net Margin: 6.51%) | Moderate (Net Margin: 3.37%) |
| Innovation | High | High |
| Global presence | Strong | Moderate |
| Market Share | Moderate | High |
| Debt level | High (Debt-to-Equity: 4.33) | Low (Debt-to-Equity: 0.22) |
Key takeaways from this analysis indicate that while both companies exhibit strong innovation, Teradata faces challenges with profitability and high debt levels. Conversely, Pure Storage demonstrates a more favorable debt structure and a stronger market presence.
Risk Analysis
In the following table, I summarize the key risks associated with Teradata Corporation (TDC) and Pure Storage, Inc. (PSTG).
| Metric | TDC | PSTG |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate | Moderate |
Both companies face significant market and operational risks, particularly as demand for data solutions fluctuates. TDC has a stable regulatory environment, while PSTG has recently experienced volatility in demand, impacting its operational stability.
Which one to choose?
When comparing Teradata Corporation (TDC) and Pure Storage, Inc. (PSTG), the analysis reveals distinct profiles. TDC shows a stable revenue stream with a market cap of 3B and a recent net income of 114M, reflecting a net profit margin of 6.5%. Its stock trend is bearish, with a significant price drop of 38.8% over the past year. Conversely, PSTG has experienced a bullish trend with a 127.3% price increase, boasting a market cap of approximately 22B and a net income of 107M, albeit with a higher price-to-earnings ratio of 206.9, indicating potential overvaluation.
For growth-oriented investors, PSTG may be attractive due to its upward momentum, while those seeking stability could lean towards TDC, which has more consistent earnings but shows signs of market challenges. Risks for both companies include market dependence and competition within their sectors.
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 Pure Storage, Inc. to enhance your investment decisions:
