Workday (NYSE: WDAY) and Box (NYSE:BOX) are both mid-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.
Volatility & Risk
Workday has a beta of 1.9, meaning that its share price is 90% more volatile than the S&P 500. Comparatively, Box has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.
This is a summary of recent ratings and price targets for Workday and Box, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Workday currently has a consensus target price of $92.08, suggesting a potential downside of 9.20%. Box has a consensus target price of $23.00, suggesting a potential upside of 22.67%. Given Box’s stronger consensus rating and higher possible upside, analysts clearly believe Box is more favorable than Workday.
Institutional & Insider Ownership
36.6% of Box shares are owned by institutional investors. 37.7% of Workday shares are owned by company insiders. Comparatively, 22.3% of Box shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Workday and Box’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Workday||$1.70 billion||12.35||-$242.20 million||($1.95)||-52.00|
|Box||$425.67 million||5.79||-$116.54 million||($1.18)||-15.89|
Box has higher revenue, but lower earnings than Workday. Workday is trading at a lower price-to-earnings ratio than Box, indicating that it is currently the more affordable of the two stocks.
This table compares Workday and Box’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Workday beats Box on 8 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.
Box Company Profile
Box, Inc. provides an enterprise content management platform that enables organizations of all sizes to manage enterprise content while allowing access and sharing of this content from anywhere, on any device. With the Company’s Software-as-a-Service (SaaS) cloud-based platform, users can collaborate on content both internally and with external parties, automate content-driven business processes, develop custom applications, and implement data protection, security and compliance features to comply with internal policies and industry regulations. Its platform enables people to view, share and collaborate on content, across various file formats and media types. The software integrates with enterprise business applications, and is compatible with various application environments, operating systems and devices, ensuring that workers have access to their business content. It offers individuals a free basic version of the Box platform that allows them to experience its solution.
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