Workday (NASDAQ: WDAY) and Opower (NYSE:OPWR) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.
Insider and Institutional Ownership
67.6% 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 is poised for long-term growth.
This is a summary of current ratings and target prices for Workday and Opower, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Workday currently has a consensus target price of $103.62, suggesting a potential downside of 0.56%. Given Workday’s higher possible upside, research analysts clearly believe Workday is more favorable than Opower.
This table compares Workday and Opower’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Workday and Opower’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Workday||$1.57 billion||13.81||-$408.27 million||($1.64)||-63.54|
Opower has lower revenue, but higher earnings 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.
Workday beats Opower on 8 of the 9 factors compared between the two stocks.
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.
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.
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