In the ever-evolving technology sector, companies like Teradata Corporation (TDC) and Pure Storage, Inc. (PSTG) stand out for their innovative approaches to data management. Both organizations operate within the data infrastructure industry, albeit with differing strategies and product offerings. Teradata focuses on multi-cloud analytics, while Pure Storage specializes in advanced data storage solutions. In this article, I will analyze their strengths and weaknesses to help you identify which company presents the more compelling investment opportunity.
Table of contents
Company Overview
Teradata Corporation Overview
Teradata Corporation (TDC) is a leading provider of a connected multi-cloud data platform designed for enterprise analytics. Established in 1979 and headquartered in San Diego, California, Teradata aims to help organizations harness the power of their data through its flagship product, Teradata Vantage. The platform facilitates data integration across various sources, enabling clients to simplify their ecosystems and transition to cloud solutions seamlessly. Teradata serves a diverse range of industries, including financial services, healthcare, and telecommunications, by offering consulting services that help clients operationalize their analytical capabilities. With a market capitalization of approximately $2.87B, Teradata continues to position itself as a vital player in the technology sector.
Pure Storage, Inc. Overview
Pure Storage, Inc. (PSTG) specializes in data storage technologies and has established itself as a prominent entity in the computer hardware industry since its founding in 2009. Based in Mountain View, California, Pure Storage offers innovative solutions such as FlashArray and FlashBlade that cater to various workloads, from databases to unstructured data. The company emphasizes enterprise-class data services through its Purity software, which enhances data protection and enables seamless management across different storage protocols. With a market capitalization around $23.25B, Pure Storage’s commitment to modern infrastructure solutions and subscription-based services positions it strongly in the competitive landscape of data management.
Key similarities and differences
Both Teradata and Pure Storage are rooted in the technology sector, providing data-centric solutions to businesses. However, Teradata primarily focuses on multi-cloud data analytics while Pure Storage emphasizes data storage hardware and software solutions. Their business models differ in that Teradata offers consulting services alongside its platform, whereas Pure Storage leans more towards subscription-based and direct sales of storage products.
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 | Teradata Corporation (TDC) | Pure Storage, Inc. (PSTG) |
|---|---|---|
| Market Cap | 2.87B | 23.25B |
| Revenue | 1.75B | 3.17B |
| EBITDA | 293M | 282M |
| EBIT | 193M | 156M |
| Net Income | 114M | 107M |
| EPS | 1.18 | 0.33 |
| Fiscal Year | 2024 | 2025 |
Interpretation of Income Statement
In the latest fiscal year, revenue for Teradata declined slightly from the previous year, while Pure Storage showed a significant increase. Teradata’s net income increased, highlighting improved operational efficiency, while Pure Storage’s growth stagnated, indicating potential challenges in margin management. Both companies maintained healthy EBITDA margins, but Teradata’s performance suggests a stronger position in managing costs relative to its revenue, while Pure Storage may need to address rising expenses to enhance profitability. Overall, the outlook for Teradata appears cautiously optimistic, while Pure Storage may require strategic adjustments to sustain growth momentum.
Financial Ratios Comparison
The following table summarizes the most recent financial metrics for Teradata Corporation (TDC) and Pure Storage, Inc. (PSTG), allowing for a comparison of their performance based on key financial ratios.
| 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
When analyzing these ratios, TDC appears to have a stronger return on equity (ROE) and return on invested capital (ROIC), indicating effective capital utilization compared to PSTG. However, TDC also carries higher debt levels, reflected in its debt-to-equity ratio and interest coverage, which could pose risks in a downturn. PSTG’s lower leverage suggests a more conservative approach, although its profitability metrics (e.g., ROE and ROIC) are significantly weaker, raising concerns about growth potential. Overall, both companies present distinct risk/reward profiles that potential investors should carefully consider.
Dividend and Shareholder Returns
Teradata Corporation (TDC) does not pay dividends, opting instead for a reinvestment strategy to fuel growth and innovation. This approach is common in high-growth phases, allowing for capital allocation towards R&D and acquisitions. TDC does engage in share buybacks, which can enhance shareholder value, but it carries risks if the repurchases are excessive. Conversely, Pure Storage, Inc. (PSTG) also does not distribute dividends, focusing on similar growth priorities. Both companies’ strategies may align with long-term shareholder value creation, but consistent monitoring of their operational performance and cash flow is essential for investors.
Strategic Positioning
Teradata Corporation (TDC) holds a modest market share in the software infrastructure sector, focusing on enterprise analytics with its Teradata Vantage platform. In contrast, Pure Storage, Inc. (PSTG) commands a significant presence in the data storage market, driven by its innovative FlashArray products. Both companies face competitive pressure from emerging technologies and established players, emphasizing the need for continuous advancement in their offerings to mitigate risks from technological disruption.
Stock Comparison
In this analysis, I will evaluate the stock performance of Teradata Corporation (TDC) and Pure Storage, Inc. (PSTG) over the past year, focusing on significant price movements and trading dynamics that have shaped their market presence.
Trend Analysis
Teradata Corporation (TDC) has experienced a price change of -36.95% over the past year, indicating a bearish trend. The stock reached a notable high of 48.99 and a low of 19.73, with a standard deviation of 7.15 suggesting substantial volatility. Recently, TDC saw a positive trend of 37.18% from September 21 to December 7, 2025, with a standard deviation of 3.46, though this short-term uptick may not negate the overall bearish sentiment.
Pure Storage, Inc. (PSTG), on the other hand, has shown a robust price increase of 93.8% over the last year, reflecting a bullish trend despite recent fluctuations. The stock’s high was 98.7, and its low was 36.61, with a higher standard deviation of 13.43 indicating greater price volatility. However, in the recent period from September 21 to December 7, 2025, the stock experienced a decline of 19.26%, coupled with a trend slope of -0.74, signaling deceleration in upward momentum.
Overall, TDC’s long-term bearish trend contrasts sharply with PSTG’s bullish performance, even as it faces short-term challenges.
Analyst Opinions
Recent analyst recommendations for Teradata Corporation (TDC) reflect a consensus rating of “Buy” with a B+ rating. Analysts highlight its strong return on equity and assets, making it an attractive option for growth-focused investors. In contrast, Pure Storage, Inc. (PSTG) holds a “Hold” rating with a B. While its overall performance is steady, analysts note concerns over its price-to-earnings ratio. The mixed outlook suggests caution, especially with PSTG, while TDC appears to present a more favorable opportunity for investment this year.
Stock Grades
In the current market, it’s essential to keep an eye on stock ratings as they can significantly influence investment decisions. Below are the reliable 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 |
|---|---|---|---|
| Lake Street | maintain | Buy | 2025-12-03 |
| Susquehanna | downgrade | Neutral | 2025-12-03 |
| UBS | maintain | Sell | 2025-12-03 |
| Citigroup | maintain | Buy | 2025-12-03 |
| Wedbush | maintain | Outperform | 2025-12-03 |
| JP Morgan | maintain | Overweight | 2025-12-03 |
| Needham | maintain | Buy | 2025-12-03 |
| Barclays | maintain | Equal Weight | 2025-12-03 |
| JP Morgan | maintain | Overweight | 2025-11-17 |
| Morgan Stanley | maintain | Equal Weight | 2025-11-17 |
Overall, Teradata shows a positive trend with an upgrade to “Market Outperform” from Citizens, while Pure Storage has a mixed sentiment with both maintenance and downgrades in recent evaluations. It’s crucial to analyze these ratings further in the context of broader market conditions and individual investment strategies.
Target Prices
Reliable target prices have been obtained from verified analysts for both companies.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Teradata Corporation | 24 | 24 | 24 |
| Pure Storage, Inc. | 105 | 60 | 91.15 |
For Teradata Corporation, the consensus target price is significantly below the current price of 30.18, suggesting a potential decline ahead. In contrast, Pure Storage, Inc.’s consensus of 91.15 indicates a favorable outlook compared to its current price of 70.995, implying room for growth.
Strengths and Weaknesses
The table below outlines the strengths and weaknesses of Teradata Corporation (TDC) and Pure Storage, Inc. (PSTG) based on recent financial data.
| Criterion | Teradata Corporation (TDC) | Pure Storage, Inc. (PSTG) |
|---|---|---|
| Diversification | Moderate (Cloud Solutions) | High (Variety of Storage Solutions) |
| Profitability | Low (Net Margin: 6.5%) | Moderate (Net Margin: 3.4%) |
| Innovation | High (Strong Analytics Focus) | High (Advanced Storage Technologies) |
| Global presence | Strong (Worldwide Clients) | Moderate (Primarily US and Europe) |
| Market Share | Niche | Growing |
| Debt level | High (Debt-to-Equity: 4.33) | Low (Debt-to-Equity: 0.22) |
Key takeaways include Teradata’s strong global presence and innovation in analytics, but it faces challenges in profitability and high debt levels. Conversely, Pure Storage showcases a robust diversification in products with a lower debt profile, yet its profitability remains moderate.
Risk Analysis
In the table below, I’ve outlined the key risks associated with two companies, Teradata Corporation (TDC) and Pure Storage, Inc. (PSTG), to help you make informed investment decisions.
| Metric | Teradata Corporation (TDC) | Pure Storage, Inc. (PSTG) |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate | Low |
Both companies face market and operational risks, with Pure Storage showing higher exposure, particularly due to its price volatility and operational challenges. Recent trends indicate that market fluctuations and technological advancements can significantly impact their performance.
Which one to choose?
In comparing Teradata Corporation (TDC) and Pure Storage, Inc. (PSTG), several factors stand out. TDC shows stronger gross profit margins (60.5%) and a more favorable net profit margin (6.5%) compared to PSTG’s gross margin of 69.8% and net margin of 3.4%. However, TDC has a higher price-to-earnings ratio (26.34) than PSTG’s (206.90), indicating that it may be relatively undervalued despite its higher margins. TDC’s recent stock trend has been bearish with a decline of 36.95%, while PSTG has experienced a bullish trend with a 93.8% increase over the past year.
For growth-oriented investors, PSTG may be preferable due to its strong revenue growth and market position, while conservative investors might lean towards TDC for its profitability and lower valuation. However, risks such as market competition and valuation concerns may impact both companies.
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:
