Algorhythm (NASDAQ:RIME) versus Workiva (NYSE:WK) Critical Contrast

Workiva (NYSE:WK) and Algorhythm (NASDAQ:RIME) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Institutional & Insider Ownership

92.2% of Workiva shares are owned by institutional investors. 4.8% of Workiva shares are owned by company insiders. Comparatively, 0.9% of Algorhythm shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Workiva	4.87%	-140.17%	3.74%
Algorhythm	-176.39%	-1,310.33%	-101.29%

Volatility & Risk

Workiva has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Algorhythm has a beta of -0.25, suggesting that its stock price is 125% less volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Workiva	1	0	9	1	2.91
Algorhythm	1	1	0	0	1.50

Workiva presently has a consensus price target of $88.30, suggesting a potential upside of 21.60%. Given Workiva’s stronger consensus rating and higher possible upside, equities analysts clearly believe Workiva is more favorable than Algorhythm.

Earnings & Valuation

This table compares Workiva and Algorhythm”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Workiva	$884.57 million	4.61	-$26.17 million	$0.82	88.55
Algorhythm	$4.39 million	0.75	-$15.87 million	($1.49)	-0.13

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

Summary

Workiva beats Algorhythm on 14 of the 15 factors compared between the two stocks.

About Workiva

Workiva Inc., together with its subsidiaries, provides cloud-based reporting solutions in the United States and internationally. The company offers Workiva platform, a multi-tenant cloud software that provides data linking capabilities; audit trail services; administrators access management; and allows customers to connect data from multiple enterprise resource planning, human capital management, and customer relationship management systems, as well as other third-party cloud and on-premise applications. It serves public and private companies, government agencies, and higher-education institutions. Workiva Inc. was founded in 2008 and is headquartered in Ames, Iowa.

About Algorhythm

Algorhythm Holdings, Inc., together with its subsidiaries, engages in the development, marketing, and sale of consumer karaoke audio equipment, accessories, and musical recordings in North America, Australia, the United Kingdom, Europe, and internationally. It offers karaoke products under the Singing Machine brand; licensed karaoke microphone products under the Carpool Karaoke brand; microphone and accessories, and portable Bluetooth microphones under the Party Machine brand; music entertainment singing machines for children under the brand Singing Machine Kids; connected vehicle karaoke devices; and karaoke music subscription services for the iOS and Android platforms, as well as a web-based download store and integrated streaming services for hardware. The company primarily sells its products to retailers, including national chains, warehouse clubs, department stores, lifestyle merchants, specialty stores, and direct mail catalogs and showrooms. The company was formerly known as The Singing Machine Company, Inc. and changed its name to Algorhythm Holdings, Inc. in September 2024. Algorhythm Holdings, Inc. was incorporated in 1982 and is headquartered in Fort Lauderdale, Florida.