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

Profitability

This table compares Workday and its competitors’ 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%

Volatility & 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 competitors have a beta of 0.55, meaning that their average share price is 45% less volatile than the S&P 500.

Institutional and Insider 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, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Workday and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Workday 3 21 12 0 2.25
Workday Competitors 183 1523 2873 91 2.61

Workday currently has a consensus price target of $103.62, indicating a potential upside of 1.58%. As a group, “Application Software” companies have a potential upside of 15.07%. Given Workday’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Workday has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares Workday and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Workday $1.57 billion -$408.27 million -62.20
Workday Competitors $959.90 million $61.56 million 568.88

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

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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