Workday (NASDAQ: WDAY) and Twilio (NYSE:TWLO) are both technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.
Insider and Institutional Ownership
66.9% of Workday shares are held by institutional investors. Comparatively, 60.0% of Twilio shares are held by institutional investors. 37.7% of Workday shares are held by company insiders. Comparatively, 25.0% of Twilio shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Workday and Twilio’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Workday||$1.57 billion||16.59||-$408.27 million||($1.44)||-86.12|
|Twilio||$399.02 million||7.71||-$41.32 million||($0.70)||-47.27|
Twilio has lower revenue, but higher earnings than Workday. Workday is trading at a lower price-to-earnings ratio than Twilio, indicating that it is currently the more affordable of the two stocks.
This table compares Workday and Twilio’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and target prices for Workday and Twilio, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Workday presently has a consensus target price of $108.37, suggesting a potential downside of 12.61%. Twilio has a consensus target price of $37.17, suggesting a potential upside of 12.32%. Given Twilio’s stronger consensus rating and higher possible upside, analysts clearly believe Twilio is more favorable than Workday.
Twilio beats Workday on 7 of the 13 factors compared between the two stocks.
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.
Twilio Company Profile
Twilio Inc. offers Cloud Communications Platform, which enables developers to build, scale and operate real-time communications within software applications. The Company’s platform consists of Programmable Communications Cloud, Super Network and Business Model for Innovators. Its Programmable Communications Cloud software enables developers to embed voice, messaging, video and authentication capabilities into their applications through its Application Programming Interfaces (APIs). Its Programmable Communications Cloud offers building blocks that enable its customers to build what they need. Its Programmable Communications Cloud includes Programmable Voice, Programmable Messaging, Programmable Video and Use Case APIs. The Super Network is its software layer that allows its customers’ software to communicate with connected devices globally. It interconnects with communications networks around the world.
Receive News & Ratings for Workday Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Workday and related companies with MarketBeat.com's FREE daily email newsletter.