Contrasting PTC (PTC) and Workday (WDAY)
Workday (NYSE: WDAY) and PTC (NASDAQ:PTC) are both mid-cap technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, profitability and earnings.
Valuation & Earnings
This table compares Workday and PTC’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Workday||$1.85 billion||11.75||-$229.78 million||($1.80)||-58.07|
|PTC||$1.15 billion||5.69||$91.94 million||($0.35)||-161.83|
PTC has higher revenue, but lower earnings than Workday. PTC is trading at a lower price-to-earnings ratio than Workday, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Workday has a beta of 1.88, meaning that its share price is 88% more volatile than the S&P 500. Comparatively, PTC has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Workday and PTC, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Workday presently has a consensus price target of $98.68, suggesting a potential downside of 5.58%. PTC has a consensus price target of $63.31, suggesting a potential upside of 11.78%. Given PTC’s stronger consensus rating and higher possible upside, analysts clearly believe PTC is more favorable than Workday.
This table compares Workday and PTC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
67.1% of Workday shares are held by institutional investors. Comparatively, 97.9% of PTC shares are held by institutional investors. 37.7% of Workday shares are held by insiders. Comparatively, 1.0% of PTC shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
PTC beats Workday on 9 of the 13 factors compared between the two stocks.
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.
PTC Company Profile
PTC Inc. is a global computer software and services company. The Company offers a portfolio of computer-aided design (CAD) modeling, product lifecycle management (PLM) and service lifecycle management (SLM) solutions for manufacturers to create, operate, and service products. It offers a suite of Internet of Things (IoT) solutions that enables its customers to connect, manage and analyze data, and create applications. Its segments include the Solutions Group, the IoT Group and Professional Services. The Solutions Group segment includes its CAD, PLM and SLM products. The IoT Group segment includes its IoT, analytics and augmented reality (AR) solutions. The Professional Services segment includes consulting, implementation and training business. Its IoT products include ThingWorx, KEPServerEX, Vuforia Studio and Vuforia. Its CAD products include Creo and Mathcad. Its PLM products include Windchill, Integrity, Navigate and Creo View. Its SLM products include Servigistics and Arbortext.
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