Workday (NASDAQ: WDAY) is one of 60 publicly-traded companies in the “Application Software” industry, but how does it compare to its rivals? We will compare Workday to related businesses based on the strength of its analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.

Insider and Institutional 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 endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

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%

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Workday $1.57 billion -$408.27 million -71.06
Workday Competitors $989.60 million $64.64 million 545.06

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 summary of recent ratings and recommmendations for Workday and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Workday 3 21 12 0 2.25
Workday Competitors 182 1524 2875 91 2.62

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 12.92%. Given Workday’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Workday has less favorable growth aspects than its rivals.

Volatility and Risk

Workday has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500. Comparatively, Workday’s rivals have a beta of 5.37, meaning that their average share price is 437% more volatile than the S&P 500.

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.

Receive News & Ratings for Workday Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Workday and related companies with MarketBeat.com's FREE daily email newsletter.