Twilio (NYSE: TWLO) 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 profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.
This table compares Twilio and Workday’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
61.4% of Twilio shares are held by institutional investors. Comparatively, 70.0% of Workday shares are held by institutional investors. 25.0% of Twilio shares are held by insiders. Comparatively, 37.7% of Workday shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This is a summary of current recommendations and price targets for Twilio and Workday, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Twilio presently has a consensus target price of $38.14, suggesting a potential downside of 6.49%. Workday has a consensus target price of $119.53, suggesting a potential downside of 13.88%. Given Twilio’s stronger consensus rating and higher probable upside, analysts clearly believe Twilio is more favorable than Workday.
Earnings & Valuation
This table compares Twilio and Workday’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Twilio||$399.02 million||9.63||-$63.70 million||($0.80)||-50.99|
|Workday||$2.14 billion||13.60||-$321.22 million||($1.54)||-90.12|
Twilio has higher earnings, but lower revenue 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.
Workday beats Twilio on 8 of the 13 factors compared between the two stocks.
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.
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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