Analyzing Workiva (WK) & Intuit (INTU)

Workiva (NYSE: WK) and Intuit (NASDAQ:INTU) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Workiva and Intuit, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Workiva 0 3 3 0 2.50
Intuit 2 5 12 0 2.53

Workiva presently has a consensus target price of $21.83, indicating a potential upside of 1.31%. Intuit has a consensus target price of $152.65, indicating a potential downside of 3.69%. Given Workiva’s higher possible upside, equities research analysts plainly believe Workiva is more favorable than Intuit.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Workiva $178.65 million 5.06 -$43.97 million ($0.91) -23.68
Intuit $5.18 billion 7.83 $971.00 million $3.77 42.04

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

Profitability

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

Net Margins Return on Equity Return on Assets
Workiva -18.83% -13,251.94% -25.39%
Intuit 18.62% 77.56% 22.36%

Insider & Institutional Ownership

35.2% of Workiva shares are owned by institutional investors. Comparatively, 86.0% of Intuit shares are owned by institutional investors. 33.3% of Workiva shares are owned by insiders. Comparatively, 5.6% of Intuit shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Intuit pays an annual dividend of $1.56 per share and has a dividend yield of 1.0%. Workiva does not pay a dividend. Intuit pays out 41.4% of its earnings in the form of a dividend.

Volatility and Risk

Workiva has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, Intuit has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500.

Summary

Intuit beats Workiva on 12 of the 15 factors compared between the two stocks.

Workiva Company Profile

Workiva Inc. provides enterprises with cloud solutions for improving productivity, accountability and insight into business data. The Company created Wdesk, a collaborative work management platform for organizations to collect, link, report and analyze their business data. Wdesk’s word processing, spreadsheet and presentation applications are integrated and built upon a data management engine, offering synchronized data, controlled collaboration, granular permissions and a full audit trail. As of December 31, 2016, it provided its platform to over 2,700 organizations. Wdesk enables coworkers to create, review and publish data-linked documents and reports with control, accuracy and productivity. With Wdesk data linking, changes are automatically updated in all linked instances, including numbers, text, charts and graphics throughout a customer’s spreadsheets, word-processing documents and presentation decks in the Wdesk platform.

Intuit Company Profile

Intuit Inc. is a provider of business and financial management solutions for small businesses, consumers and accounting professionals. The Company operates through three segments: Small Business, Consumer Tax and ProConnect. The Small Business segment serves and advises small businesses and the accounting professionals, and includes QuickBooks financial and business management online services and desktop software, payroll solutions, and payment processing solutions. The Small Business segment also includes third-party applications that integrate with the Company’s offerings. The Consumer Tax segment targets consumers and includes TurboTax products and services, which enable individuals to prepare and file their own federal and state personal income tax returns. The ProConnect segment targets professional accountants in the United States and Canada. Its ProConnect professional tax offerings include Lacerte, ProSeries, ProFile and ProConnect Tax Online.

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