Head-To-Head Analysis: Workday (WDAY) and The Competition

Workday (NASDAQ: WDAY) is one of 61 publicly-traded companies in the “Application Software” industry, but how does it contrast to its rivals? We will compare Workday to similar companies based on the strength of its dividends, earnings, risk, profitability, valuation, institutional ownership and analyst recommendations.

Earnings and Valuation

This table compares Workday and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Workday $1.57 billion -$408.27 million -62.76
Workday Competitors $959.90 million $61.56 million 554.14

Workday has higher revenue, but lower earnings than its rivals. Workday is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Workday has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500. Comparatively, Workday’s rivals have a beta of 0.54, meaning that their average share price is 46% less volatile than the S&P 500.

Profitability

This table compares Workday and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Workday -16.91% -19.73% -7.37%
Workday Competitors -26.82% -293.61% -15.46%

Analyst Recommendations

This is a breakdown of current recommendations for Workday and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Workday 3 21 12 0 2.25
Workday Competitors 182 1522 2873 91 2.62

Workday presently has a consensus target price of $103.62, indicating a potential upside of 0.67%. As a group, “Application Software” companies have a potential upside of 15.24%. Given Workday’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Workday has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

67.5% of Workday shares are held by institutional investors. Comparatively, 70.1% of shares of all “Application Software” companies are held by institutional investors. 37.7% of Workday shares are held by company insiders. Comparatively, 15.4% of shares of all “Application Software” companies are held by company 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.

About Workday

Workday, Inc. is a provider of enterprise cloud applications for finance and human resources. The Company delivers financial management, human capital management and analytics applications designed for various companies, educational institutions and government agencies. As part of its applications, the Company provides embedded analytics that capture the content and context of everyday business events, facilitating informed decision-making from wherever users are working. Its applications include Workday Financial Management, Workday Human Capital Management (HCM) and Other Applications. It also provides open, standards-based Web-services application programming interfaces, and pre-built packaged integrations and connectors. Workday Financial Management is a unified application with a range of financial capabilities, relevant analytics and metrics, and auditable process management. Workday HCM allows an organization to staff, pay, organize and develop its global workforce.

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