Opower (OPWR) & Workday (WDAY) Head to Head Analysis

Opower (NYSE: OPWR) and Workday (NASDAQ:WDAY) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Earnings and Valuation

This table compares Opower and Workday’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Opower N/A N/A N/A ($0.87) -11.83
Workday $1.57 billion 14.63 -$408.27 million ($1.64) -66.66

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

Profitability

This table compares Opower and Workday’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Opower -30.39% -59.02% -26.51%
Workday -16.91% -19.73% -7.37%

Institutional and Insider Ownership

67.5% of Workday shares are held by institutional investors. 37.7% of Workday shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Opower and Workday, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Opower 0 0 0 0 N/A
Workday 3 20 13 0 2.28

Workday has a consensus target price of $104.50, suggesting a potential downside of 4.41%. Given Workday’s higher possible upside, analysts clearly believe Workday is more favorable than Opower.

Summary

Workday beats Opower on 8 of the 9 factors compared between the two stocks.

About Opower

Opower, Inc. (Opower) is a provider of cloud-based software to the utility industry. The Company’s software solutions deliver key customer-facing applications that reduce energy demand and provide customer care. The Company’s software analyzes energy data and presents insights that motivate reductions in energy consumption. Its integrated solutions include Demand-Side Management (DSM), which include energy efficiency and demand response, and Customer Care, which include digital engagement and bill advisor. The key components of its energy efficiency solution include home energy reports, smart meter-enabled e-mails and marketplace suite. The key components of its demand response solution include peak day alerts and peak day feedback reports. Opower’s digital engagement solutions include NextWeb platform, outbound communications, points and rewards, and rates engine. The Key components of its Bill Advisor solution include customer service interface and proactive alerts.

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.

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