Financial Analysis: Castlight Health (CSLT) versus Workday (WDAY)
Castlight Health (NASDAQ: WDAY) and Workday (NASDAQ:WDAY) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.
This is a summary of recent recommendations and price targets for Castlight Health and Workday, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Institutional & Insider Ownership
49.9% of Castlight Health shares are owned by institutional investors. Comparatively, 68.0% of Workday shares are owned by institutional investors. 22.6% of Castlight Health shares are owned by insiders. Comparatively, 33.6% of Workday shares are owned 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.
Risk and Volatility
Castlight Health has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Workday has a beta of 2.02, suggesting that its stock price is 102% more volatile than the S&P 500.
Valuation & Earnings
This table compares Castlight Health and Workday’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Castlight Health||$131.43 million||2.99||-$55.57 million||($0.26)||-10.96|
|Workday||$2.14 billion||14.59||-$321.22 million||($1.27)||-113.96|
Castlight Health has higher earnings, but lower revenue than Workday. Workday is trading at a lower price-to-earnings ratio than Castlight Health, indicating that it is currently the more affordable of the two stocks.
This table compares Castlight Health and Workday’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Workday beats Castlight Health on 9 of the 14 factors compared between the two stocks.
Castlight Health Company Profile
Castlight Health, Inc. provides a software-as-a-service platform used for health benefits navigation for employees in the United States. Its platform matches employees to the resources their employers make available to them; managing a condition; and assists them to manage their benefits. The company also offers communication and testing, implementation, and user customer support services. It serves customers in a range of industries, including education, manufacturing, retail, technology, and government. The company was formerly known as Ventana Health Services and changed its name to Castlight Health, Inc. in April 2010. Castlight Health, Inc. was founded in 2008 and is headquartered in San Francisco, California.
Workday Company Profile
Workday, Inc. provides enterprise cloud applications for finance and human resources worldwide. It provides applications for customers to manage critical business functions to optimize their financial and human capital resources. The company offers Workday Financial Management application that provides functions of general ledger, accounting, accounts payable and receivable, cash and asset management, employee expense and revenue management, projects, procurement, inventory, and grants management. It also provides Workday Human Capital Management application, which includes human resources management, such as workforce lifecycle and organization management, compensation, absence, and employee benefits administration; and global talent management comprising goal and performance management, succession planning, and career and development planning. In addition, the company offers Workday Financial Performance Management application; Workday Learning application; Workday Payroll application for enterprise payroll; Workday Planning application to create, collaborate, and take action on financial and workforce plans; Workday Time Tracking application, which automates workforce management processes; and Workday Recruiting, an application to support candidates, hiring managers, the interview team, and recruiters. Further, it provides Prism Analytics that enables customers to bring together various data; Workday Professional Services Automation application to supports the billable projects lifecycle; and Workday Student, a student and faculty lifecycle information system. The company serves technology, financial services, business and professional services, healthcare and life sciences, manufacturing, retail and hospitality, education, and government and non-profit 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 founded in 2005 and is headquartered in Pleasanton, California.
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