Workiva (NYSE:WK) and Ceridian HCM (NYSE:CDAY) are both mid-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Risk and Volatility

Workiva has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Ceridian HCM has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500.

Insider & Institutional Ownership

51.5% of Workiva shares are held by institutional investors. Comparatively, 79.6% of Ceridian HCM shares are held by institutional investors. 18.5% of Workiva shares are held by insiders. Comparatively, 26.9% of Ceridian HCM shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Workiva and Ceridian HCM’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Workiva -18.83% N/A -17.66%
Ceridian HCM -5.13% 0.89% 0.23%

Valuation & Earnings

This table compares Workiva and Ceridian HCM’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Workiva $244.34 million 10.59 -$50.07 million ($0.93) -61.62
Ceridian HCM $746.40 million 9.36 -$63.40 million ($0.05) -992.60

Workiva has higher earnings, but lower revenue than Ceridian HCM. Ceridian HCM is trading at a lower price-to-earnings ratio than Workiva, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Workiva and Ceridian HCM, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Workiva 1 0 4 0 2.60
Ceridian HCM 0 7 5 0 2.42

Workiva currently has a consensus price target of $41.60, suggesting a potential downside of 27.41%. Ceridian HCM has a consensus price target of $45.70, suggesting a potential downside of 7.92%. Given Ceridian HCM’s higher probable upside, analysts plainly believe Ceridian HCM is more favorable than Workiva.

Summary

Ceridian HCM beats Workiva on 10 of the 14 factors compared between the two stocks.

Workiva Company Profile

Workiva Inc. provides cloud-based solutions for connected data, reporting, and compliance worldwide. The company offers Wdesk, a platform that provides data collection and linking, data integrations, controlled collaboration, granular permissions, process management, and full audit trail services; and Wdata, which includes data preparation tools, data connectors, and application programming interfaces that enable customers to create direct connections to their data. It serves public and private companies, government agencies, and higher-education institutions. The company was founded in 2008 and is headquartered in Ames, Iowa.

Ceridian HCM Company Profile

Ceridian HCM Holding Inc. operates as a human capital management (HCM) software company in the United States and internationally. The company offers Dayforce, a cloud HCM platform that provides human resources (HR), payroll, benefits, workforce management, and talent management functionality; and Powerpay, a cloud platform, which offers scalable and straightforward payroll and HR solutions. It also provides Bureau solutions for payroll and payroll-related services. Ceridian HCM Holding Inc. was incorporated in 2013 and is headquartered in Minneapolis, Minnesota.

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