Workday (NASDAQ:WDAY – Get Free Report) is one of 953 publicly-traded companies in the “Software” industry, but how does it compare to its competitors? We will compare Workday to similar businesses based on the strength of its dividends, profitability, analyst recommendations, risk, institutional ownership, valuation and earnings.
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 | 12.32% | 20.95% | 9.22% |
| Workday Competitors | -612.40% | 21.13% | -8.86% |
Valuation & Earnings
This table compares Workday and its competitors revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Workday | $9.55 billion | $693.00 million | 38.58 |
| Workday Competitors | $1.80 billion | $385.91 million | 109.20 |
Workday has higher revenue and 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.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Workday and its competitors, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Workday | 2 | 19 | 22 | 0 | 2.47 |
| Workday Competitors | 5753 | 21542 | 44910 | 1497 | 2.57 |
Workday presently has a consensus target price of $202.10, suggesting a potential upside of 6.25%. As a group, “Software” companies have a potential upside of 29.30%. Given Workday’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Workday has less favorable growth aspects than its competitors.
Volatility and Risk
Workday has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, Workday’s competitors have a beta of 1.34, meaning that their average stock price is 34% more volatile than the S&P 500.
Institutional and Insider Ownership
89.8% of Workday shares are held by institutional investors. Comparatively, 41.9% 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 hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Workday competitors beat Workday on 8 of the 13 factors compared.
Workday Company Profile
Workday, Inc. provides enterprise cloud applications in the United States and internationally. Its applications help its customers to plan, execute, analyze, and extend to other applications and environments to manage their business and operations. The company offers a suite of financial management applications to maintain accounting information in the general ledger; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights; enhance financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations. It also provides spend management solutions that help organizations to streamline supplier selection and contracts, manage indirect spend, and build and execute sourcing events, such as requests for proposals; expense management solutions to submit and approve expenses; and a suite of human capital management applications that enables HR teams to hire, onboard, pay, develop, reskill, and provide employee experiences. In addition, the company offers planning applications; and applications for analytics and reporting comprising augmented analytics to surface insights to the line of business in simple-to-understand stories, machine learning to drive efficiency and automation, and benchmarks to compare performance against other companies. Further, it provides supply chain and inventory solutions to healthcare organizations; solutions to manage the end-to-end student and faculty lifecycle; and Workday Extend for customers and their developers to build custom applications. It serves professional and business services, financial services, healthcare, education, government, technology, media, retail, and hospitality industries. The company was formerly known as North Tahoe Power Tools, Inc. and changed its name to Workday, Inc. in July 2005. Workday, Inc. was incorporated in 2005 and is headquartered in Pleasanton, California.
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