Contrasting Workday (WDAY) and Its Rivals

Workday (NASDAQ:WDAY) is one of 959 publicly-traded companies in the “Software” industry, but how does it contrast to its rivals? We will compare Workday to related companies based on the strength of its valuation, analyst recommendations, institutional ownership, profitability, dividends, earnings and risk.

Analyst Ratings

This is a summary of recent recommendations and price targets for Workday and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Workday	2	19	22	0	2.47
Workday Competitors	5852	21632	45028	1503	2.57

Workday currently has a consensus target price of $202.10, indicating a potential upside of 2.87%. As a group, “Software” companies have a potential upside of 28.58%. Given Workday’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Workday has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

89.8% of Workday shares are held by institutional investors. Comparatively, 41.5% of shares of all “Software” companies are held by institutional investors. 18.6% of Workday shares are held by insiders. Comparatively, 19.9% of shares of all “Software” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

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	12.32%	20.95%	9.22%
Workday Competitors	-596.15%	26.13%	-8.98%

Volatility and Risk

Workday has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, Workday’s rivals have a beta of 1.33, suggesting that their average stock price is 33% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Workday	$9.55 billion	$693.00 million	39.85
Workday Competitors	$1.80 billion	$382.69 million	112.31

Workday has higher revenue and 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.

Summary

Workday rivals beat Workday on 8 of the 13 factors compared.

About Workday

Workday, Inc. develops cloud-based software for managing human resources, finance and business operations. Its products include Workday Human Capital Management, Workday Financial Management and Workday Adaptive Planning, which help organizations manage areas such as workforce administration, accounting, budgeting and forecasting. Founded in 2005 by Dave Duffield and Aneel Bhusri, Workday serves businesses, governments and educational institutions across a range of industries. Its operations and customer base extend across North America and international markets.