WDAY Stock: Analyzing Workday and The Competition


Workday (NASDAQ: WDAY) is one of 61 public companies in the “Application Software” industry, but how does it compare to its competitors? We will compare Workday to similar businesses based on the strength of its valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Workday $1.57 billion -$408.27 million -59.19
Workday Competitors $916.05 million $45.64 million 486.82

Workday has higher revenue, but lower 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.


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 -19.78% -24.07% -9.38%
Workday Competitors -26.09% -104.80% -13.75%

Analyst Recommendations

This is a summary of current recommendations for Workday and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Workday 4 21 13 0 2.24
Workday Competitors 176 1500 2840 89 2.62

Workday presently has a consensus price target of $102.18, suggesting a potential downside of 4.09%. As a group, “Application Software” companies have a potential upside of 14.38%. Given Workday’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Workday has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

67.6% of Workday shares are held by institutional investors. Comparatively, 70.3% of shares of all “Application Software” companies are held by institutional investors. 37.7% of Workday shares are held by company insiders. Comparatively, 14.8% of shares of all “Application Software” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Workday has a beta of 1.87, suggesting that its share price is 87% more volatile than the S&P 500. Comparatively, Workday’s competitors have a beta of -0.04, suggesting that their average share price is 104% less volatile than the S&P 500.

Workday Company Profile

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.


Please enter your comment!
Please enter your name here