Workday (NASDAQ: WDAY) is one of 61 publicly-traded companies in the “Application Software” industry, but how does it weigh in compared to its rivals? We will compare Workday to related companies based on the strength of its earnings, analyst recommendations, profitability, dividends, risk, institutional ownership and valuation.

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Workday $1.57 billion -$408.27 million -62.39
Workday Competitors $959.90 million $61.56 million 561.87

Workday has higher revenue, but lower 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.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Workday and its rivals, 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 1526 2875 91 2.61

Workday currently has a consensus price target of $103.62, suggesting a potential upside of 1.27%. As a group, “Application Software” companies have a potential upside of 12.86%. Given Workday’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Workday has less favorable growth aspects than its rivals.

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 -16.91% -19.73% -7.37%
Workday Competitors -23.41% -255.43% -12.20%

Risk and Volatility

Workday has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500. Comparatively, Workday’s rivals have a beta of 3.95, indicating that their average share price is 295% more volatile than the S&P 500.

Institutional & Insider Ownership

67.5% of Workday shares are owned by institutional investors. Comparatively, 70.1% of shares of all “Application Software” companies are owned by institutional investors. 37.7% of Workday shares are owned by insiders. Comparatively, 15.4% of shares of all “Application Software” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

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

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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