Workday (NASDAQ: WDAY) and PTC (NASDAQ:PTC) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Workday and PTC, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Workday 3 21 13 0 2.27
PTC 1 3 14 0 2.72

Workday presently has a consensus target price of $103.27, suggesting a potential upside of 2.74%. PTC has a consensus target price of $65.88, suggesting a potential upside of 5.18%. Given PTC’s stronger consensus rating and higher possible upside, analysts clearly believe PTC is more favorable than Workday.

Institutional and Insider Ownership

67.6% of Workday shares are held by institutional investors. Comparatively, 98.0% of PTC shares are held by institutional investors. 37.7% of Workday shares are held by company insiders. Comparatively, 1.1% of PTC shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Workday has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500. Comparatively, PTC has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Profitability

This table compares Workday and PTC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Workday -16.91% -20.71% -8.08%
PTC 0.54% 8.08% 2.98%

Valuation and Earnings

This table compares Workday and PTC’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Workday $1.57 billion 13.32 -$408.27 million ($1.64) -61.29
PTC $1.16 billion 6.25 $6.23 million $0.05 1,253.05

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

Summary

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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