Reviewing Amplitude (NASDAQ:AMPL) and Teradata (NYSE:TDC)

Teradata (NYSE:TDC) and Amplitude (NASDAQ:AMPL) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.

Risk & Volatility

Teradata has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Amplitude has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

Profitability

This table compares Teradata and Amplitude’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Teradata	6.51%	149.16%	8.58%
Amplitude	-31.52%	-32.24%	-21.13%

Valuation & Earnings

This table compares Teradata and Amplitude”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teradata	$1.75 billion	1.19	$114.00 million	$1.17	18.46
Amplitude	$299.27 million	4.15	-$94.32 million	($0.77)	-12.47

Teradata has higher revenue and earnings than Amplitude. Amplitude is trading at a lower price-to-earnings ratio than Teradata, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

90.3% of Teradata shares are held by institutional investors. Comparatively, 73.2% of Amplitude shares are held by institutional investors. 0.9% of Teradata shares are held by company insiders. Comparatively, 4.8% of Amplitude shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Teradata and Amplitude, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teradata	3	3	4	0	2.10
Amplitude	0	4	6	1	2.73

Teradata currently has a consensus price target of $34.00, suggesting a potential upside of 57.41%. Amplitude has a consensus price target of $15.00, suggesting a potential upside of 56.25%. Given Teradata’s higher possible upside, equities analysts plainly believe Teradata is more favorable than Amplitude.

Summary

Teradata beats Amplitude on 9 of the 15 factors compared between the two stocks.

About Teradata

Teradata Corporation, together with its subsidiaries, provides a connected multi-cloud data platform for enterprise analytics. The company offers Teradata Vantage, an open and connected platform designed to leverage data across an enterprise. Its business consulting services include support services for organizations to establish a data and analytic vision, enable a multi-cloud ecosystem architecture, and identify and operationalize analytical opportunities, as well as to ensure the analytical infrastructure delivers value. The company offers support and maintenance services. It serves clients in financial services, government, healthcare and life sciences, manufacturing, retail, telecommunications, and travel/transportation sectors through a direct sales force in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. Teradata Corporation was incorporated in 1979 and is headquartered in San Diego, California.

About Amplitude

Amplitude, Inc., together with its subsidiaries, provides a digital analytics platform that analyzes customer behavior in the United States and internationally. It offers Amplitude Analytics, which provides real-time product data and reconstructed user visits; Amplitude Experiment, a solution that allows teams to test new capabilities and safely roll out new features; Amplitude CDP, an insight-driven solution that encompasses the data infrastructure, audience management, and data streaming capabilities; and Amplitude Session Replay used by product, marketing, and data teams to understand user behavior, diagnose product issues, and improve product outcomes. The company also provides customer support services related to initial implementation setup, ongoing support, and application training. It delivers its application over the Internet as a subscription service using a software-as-a-service model. The company was formerly known as Sonalight, Inc. and changed its name to Amplitude, Inc. in December 2014. Amplitude, Inc. was incorporated in 2011 and is headquartered in San Francisco, California.