NetScout Systems, Inc. (NTCT) vs Teradata Corporation (TDC)

NetScout Systems, Inc. and Teradata Corporation are both Software Infrastructure companies. NetScout Systems, Inc. and Teradata Corporation are of similar size ($2.9B and $2.7B). Teradata Corporation trades at the lower P/E: 5.9× against 23.6×. NetScout Systems, Inc. grew revenue faster over the last twelve months: 5.79% against 0.96%. Teradata Corporation has the higher net margin (27.1% vs 13.7%) and the higher return on invested capital (35.4% vs 7.91%). Across the 22 metrics below, Teradata Corporation leads on 12 and NetScout Systems, Inc. on 10.

Valuation

Metric NTCT TDC Software Infrastructure median
P/E 23.62 5.89 28.02
P/S 3.21 1.61 3.07
P/B 1.70 4.58 3.36
Price to free cash flow 11.03 3.70 17.12
EV/EBITDA 12.54 10.69 14.91
EV/Sales 2.66 1.40 3.03
Earnings yield 4.23% 16.97% 0.13%
Free cash flow yield 9.07% 27.01% 1.15%

Profitability

Metric NTCT TDC Software Infrastructure median
Gross margin 79.84% 60.79% 61.23%
Operating margin 14.82% 7.51% 0.00%
Net margin 13.71% 27.08% 0.00%
Free cash flow margin 29.22% 43.41% 1.67%
Return on equity 7.54% 119.12% 0.59%
Return on assets 5.42% 26.98% 0.00%
Return on invested capital 7.91% 35.44% 0.00%

Growth

Metric NTCT TDC Software Infrastructure median
Revenue growth (TTM) 5.79% 0.96% 13.41%
EPS growth (last fiscal year) 125.39% 16.38% —
Revenue growth, 5-year CAGR 0.67% (1.96%) 15.81%
Net income growth, 5-year CAGR 37.62% 0.15% 0.00%

Health

Metric NTCT TDC Software Infrastructure median
Debt to equity 0.00 0.08 0.06
Current ratio 1.83 0.91 1.55
Net debt to EBITDA (4.02) 0.03 0.08

Dividend

Metric NTCT TDC Software Infrastructure median
Dividend yield — — 1.53%
Payout ratio 0.00 0.00 0.00

Size

Metric NTCT TDC Software Infrastructure median
Market cap 2.85b 2.74b 835.96m

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