Socket Mobile (SCKT) versus Teradata (TDC) Critical Survey

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Socket Mobile (NASDAQ:SCKT) and Teradata (NYSE:TDC) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Socket Mobile -18.74% -3.45% -2.57%
Teradata -2.68% 18.61% 4.92%

Institutional & Insider Ownership

10.7% of Socket Mobile shares are owned by institutional investors. Comparatively, 99.4% of Teradata shares are owned by institutional investors. 29.3% of Socket Mobile shares are owned by company insiders. Comparatively, 1.2% of Teradata shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Socket Mobile and Teradata, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Socket Mobile 0 0 0 0 N/A
Teradata 2 5 5 0 2.25

Teradata has a consensus price target of $42.11, suggesting a potential upside of 11.82%. Given Teradata’s higher probable upside, analysts clearly believe Teradata is more favorable than Socket Mobile.

Earnings & Valuation

This table compares Socket Mobile and Teradata’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Socket Mobile $21.29 million 0.53 -$1.43 million N/A N/A
Teradata $2.16 billion 2.06 -$67.00 million $0.81 46.49

Socket Mobile has higher earnings, but lower revenue than Teradata.

Risk & Volatility

Socket Mobile has a beta of -0.18, meaning that its stock price is 118% less volatile than the S&P 500. Comparatively, Teradata has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.

Summary

Teradata beats Socket Mobile on 9 of the 11 factors compared between the two stocks.

About Socket Mobile

Socket Mobile, Inc. produces data capture products for mobile applications used in business mobility markets in the United States, Europe, Asia, and internationally. The company's products are incorporated into mobile applications used in mobile point of sale, enterprise mobility, asset tracking, control systems, logistics, event management, medical, and education. It provides cordless data capture devices that connect over Bluetooth and work with applications running on smartphones, mobile computers, and tablets; and software developer kits to mobile application developers to enable them to integrate its products into their applications. The company offers barcode scanning products for 1D imager and laser, and 2D barcode scanning in standard and durable cases. It is also developing D600, a contactless SmartTag reader writer version of its durable handheld barcode scanner that reads and writes various types of electronic SmartTags, including near field communications. In addition, the company offers SocketCare services program, which provides extended warranty and accidental breakage coverage for various products. It markets its products through a network of distributors and on-line resellers, application developers, and value added resellers. The company was formerly known as Socket Communications, Inc. and changed its name to Socket Mobile, Inc. in April 2008. Socket Mobile, Inc. was founded in 1992 and is headquartered in Newark, California.

About Teradata

Teradata Corporation provides analytic data solutions and related services worldwide. The company operates through Americas Data and Analytics, and International Data and Analytics segments. Its analytic data solutions comprise software, hardware, and related business consulting and support services. The company offers Teradata IntelliCloud, an as-a-service solution for the management of performance, security, availability and operations; Teradata Analytics Platform, an integrated data warehouse engine that allow access to the analytic functions and analytic engines; Business Analytics Consulting and Solutions, which engages with business users through solution-based selling; and Ecosystem Architecture Consulting that enable customers to build an optimized analytical ecosystems. It serves various industries comprising communications, ecommerce, financial services, government, gaming, healthcare, insurance, manufacturing, media and entertainment, oil and gas, retail, travel and transportation, and utilities. Teradata Corporation was founded in 1979 and is headquartered in Dayton, Ohio.

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