Great Elm Capital Group (NASDAQ: GEC) and Workday (NYSE:WDAY) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.

Analyst Recommendations

This is a summary of current ratings and price targets for Great Elm Capital Group and Workday, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Great Elm Capital Group 0 0 0 0 N/A
Workday 4 20 13 0 2.24

Workday has a consensus price target of $98.21, suggesting a potential downside of 9.77%. Given Workday’s higher probable upside, analysts plainly believe Workday is more favorable than Great Elm Capital Group.

Insider & Institutional Ownership

41.2% of Great Elm Capital Group shares are owned by institutional investors. Comparatively, 67.7% of Workday shares are owned by institutional investors. 5.0% of Great Elm Capital Group shares are owned by company insiders. Comparatively, 37.7% of Workday shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Great Elm Capital Group and Workday’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Great Elm Capital Group N/A -33.33% -21.03%
Workday -19.78% -24.07% -9.38%

Valuation & Earnings

This table compares Great Elm Capital Group and Workday’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Great Elm Capital Group $2.86 million 26.35 -$6.89 million $3.21 1.01
Workday $1.70 billion 13.25 -$242.20 million ($1.80) -60.47

Great Elm Capital Group has higher revenue, but lower earnings than Workday. Workday is trading at a lower price-to-earnings ratio than Great Elm Capital Group, indicating that it is currently the more affordable of the two stocks.

Summary

Workday beats Great Elm Capital Group on 7 of the 11 factors compared between the two stocks.

Great Elm Capital Group Company Profile

Great Elm Capital Group, Inc., formerly Unwired Planet, Inc., is a holding company. The Company makes investments in businesses and assets in various industries. The Company’s investment for long-term value creation is in the asset management business. The Company continues to explore other opportunities in the investment management business, including other business development companies (BDCs) that trade at a discount to their net asset value. The Company intends to build a diversified investment company consisting of the following three business lines: investment management, financial products and merchant banking. It is embarking on a program of creating bespoke financial products and creating a pipeline of acquisition opportunities. The Company’s subsidiary is Great Elm Capital Corporation (GECC).

Workday Company Profile

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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