Quality Systems (NASDAQ: QSII) and Teradata (NYSE:TDC) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.
Volatility & Risk
Quality Systems has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Teradata has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.
72.0% of Quality Systems shares are owned by institutional investors. Comparatively, 97.9% of Teradata shares are owned by institutional investors. 17.9% of Quality Systems shares are owned by insiders. Comparatively, 1.7% of Teradata shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations and price targets for Quality Systems and Teradata, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Quality Systems presently has a consensus target price of $14.44, indicating a potential upside of 14.67%. Teradata has a consensus target price of $34.44, indicating a potential downside of 1.59%. Given Quality Systems’ higher probable upside, analysts plainly believe Quality Systems is more favorable than Teradata.
This table compares Quality Systems and Teradata’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Quality Systems and Teradata’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Quality Systems||$509.62 million||1.57||$18.24 million||$0.28||44.96|
|Teradata||$2.16 billion||1.96||$125.00 million||($0.56)||-62.50|
Teradata has higher revenue and earnings than Quality Systems. Teradata is trading at a lower price-to-earnings ratio than Quality Systems, indicating that it is currently the more affordable of the two stocks.
Teradata beats Quality Systems on 8 of the 14 factors compared between the two stocks.
Quality Systems Company Profile
Quality Systems, Inc. (QSI) primarily, through its NextGen Healthcare subsidiary, provides technology-based solutions and services to the ambulatory care market in the United States. The Company is engaged in developing and marketing software and services that automate certain aspects of practice management (PM) and electronic health records (EHR) for medical and dental practices. The Company operates through three segments: the NextGen Division, the RCM Services Division and the QSI Dental Division. It also provides implementation, training, support and maintenance for software and complementary services, such as revenue cycle management (RCM) and electronic data interchange (EDI). The Company’s clients include single and small practice physicians, networks of practices, such as physician hospital organizations (PHOs), management service organizations (MSOs), accountable care organizations (ACOs), ambulatory care centers, community health centers, and medical and dental schools.
Teradata Company Profile
Teradata Corporation is a provider of analytic data platforms, analytic applications and related services. The Company’s segments include Americas region (North America and Latin America) and International region (Europe, Middle East, Africa, Asia Pacific and Japan). Its offerings include analytics solutions, ecosystem architecture consulting and hybrid cloud solutions. These solutions include software and hardware technology components, such as data warehousing, big data, tools for data integration, data discovery and business intelligence. Its services include a range of offerings, including consulting to enable organizations design, optimize and manage their analytic and big data environments, either on-premises or in the cloud. Its consulting services provide expertise in data architecture services; cloud, including software as a service and analytics as a service; private cloud; managed services, and related installation services.
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