Snowflake vs. Teradata: Which Data Analytics Stock is the Smarter Buy?

Snowflake SNOW and Teradata TDC are major players in the cloud analytics industry. While Snowflake provides a cloud-based platform that helps organizations store, manage and analyze large volumes of data using AI and machine learning, Teradata offers a hybrid cloud platform that combines data analytics, AI and data management to support enterprise workloads across cloud and on-premise environments.Per a MarketsandMarkets report, the global cloud analytics market was valued at $35.7 billion in 2024 and is expected to grow to $118.5 billion by 2029 at a CAGR of 27.1%. Both SNOW and TDC are well-positioned to benefit from this growing market, as businesses across industries increase spending on data-driven decision-making and AI-powered analytics.However, SNOW or TDC, which of these cloud data analytics stocks has the greater upside potential?Let’s find out.The Case for TDC StockTeradata has been benefiting from strong cloud Annual Recurring Revenues (ARR) growth. In the first quarter of 2025, public cloud ARR rose 16% year over year to $606 million. Cloud now accounts for 42% of total ARR, up from 35% in the year-ago quarter, reflecting steady adoption of its hybrid offerings.TDC’s AI and hybrid cloud innovations have been noteworthy. In March 2025, it launched Enterprise Vector Store to support agentic AI and Retrieval-Augmented generation applications. Integrated with NVIDIA’s NeMo Retriever, the platform enables real-time insights from structured and unstructured data, enhancing enterprise-scale analytics.Building on the momentum, in May 2025, Teradata partnered with Fivetran to automate data pipelines from more than 700 sources into VantageCloud. The collaboration has been simplifying low-code integration and accelerating trusted AI adoption for enterprise users.Teradata completed the IRAP assessment at the PROTECTED level, validating VantageCloud Lake’s capability to support sensitive workloads across AWS, Azure, and Google Cloud. This has strengthened TDC’s position in the public sector and compliance-sensitive industries.Teradata’s growing partner base, including major cloud providers like AWS, Azure and GCP and global system integrators such as Accenture, Deloitte, Infosys, TCS, Wipro and Cognizant, continues to reinforce its enterprise reach and cloud ecosystem.The Case of SNOW StockSnowflake has been witnessing strong enterprise adoption and growing platform utilization. As of April 30, 2025, the company had 606 customers contributing more than $1 million in trailing 12-month product revenue. Product revenues grew 26% year over year, while the net revenue retention rate held steady at 124%, indicating higher spend among existing clients.Snowflake’s expanding portfolio has been noteworthy. Offerings like Apache Iceberg, Hybrid Tables, Polaris, Cortex LLM and ML functions have helped the company attract new clients and deepen existing relationships. The total customer base stood at 11,578 (as of April 30, 2025), increasing from 11,159 as of Jan. 31, 2025. This included 754 of the Forbes Global 2000, contributing 41% of the first quarter fiscal 2025 revenue of $1 billion, up 26% year over year.SNOW has further enhanced its platform with the launch of Cortex AI+SQL, SnowConvert, Intelligence Agent and Data Science Agent. These tools simplify cloud modernization, natural language querying and AI-driven workflows for enterprise users, including non-technical teams.Leading enterprises like Canva have been leveraging Snowflake’s AI Data Cloud to personalize user experiences and accelerate data-driven decision-making. More than 4,000 customers use Snowflake’s AI and ML capabilities weekly, implying its strong product market fit and leadership in AI-native cloud analytics.Price Performance and Valuation of SNOW and TDCIn the year-to-date period, SNOW shares have rallied 36.8%, outperforming TDC shares, which have plunged 28.2%. The outperformance in SNOW stock is driven by strong AI-led product momentum, robust customer additions and an expanding partner ecosystem.The decline in TDC’s performance can be attributed to macroeconomic headwinds, cautious enterprise spending in Europe, and weakness in consulting demand.SNOW and TDC PerformanceImage Source: Zacks Investment ResearchCurrently, SNOW shares are overvalued, as suggested by a Value Score of F, while Teradata shares are trading cheap with a Value Score of B.In terms of forward 12-month Price/Sales, Snowflake shares are trading at 14.49X, higher than TDC’s 1.3X.SNOW and TDC ValuationImage Source: Zacks Investment ResearchHow Do Earnings Estimates Compare for SNOW & TDC?The Zacks Consensus Estimate for SNOW’s fiscal 2026 earnings is pegged at $1.06 per share, which has declined by 7.8% over the past 30 days. The figure indicates a 27.71% increase year over year.Snowflake Inc. Price and Consensus Snowflake Inc. price-consensus-chart | Snowflake Inc. QuoteThe Zacks Consensus Estimate for TDC’s 2025 earnings is pegged at $2.16 per share, down by 3 cents over the past 30 days. This indicates a 10.7% decrease year over year.Teradata Corporation Price and Consensus Teradata Corporation price-consensus-chart | Teradata Corporation QuoteHere’s Why TDC is a Better Buy Right NowBoth Snowflake and Teradata are well-positioned in the enterprise data and cloud analytics space. However, Snowflake’s rising expenses, intensified competition from Databricks, higher GPU-related AI investments and stretched valuation raise near-term concerns. Meanwhile, Teradata is benefiting from strong cloud ARR growth, expanding AI capabilities and strategic partnerships with Microsoft, Google and NVIDIA. Its hybrid cloud architecture offers greater deployment flexibility, giving it an edge in complex enterprise environments. With a Zacks Rank #2 (Buy), Teradata stands out as the stronger pick compared to Snowflake, which carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Teradata Corporation (TDC): Free Stock Analysis Report Snowflake Inc. (SNOW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks