Analyzing Workday (WDAY) and Five9 (FIVN)
Workday (NYSE: WDAY) and Five9 (NASDAQ:FIVN) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.
Risk & Volatility
Workday has a beta of 1.88, indicating that its share price is 88% more volatile than the S&P 500. Comparatively, Five9 has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500.
This table compares Workday and Five9’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 Five9, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Workday currently has a consensus price target of $98.40, indicating a potential downside of 8.80%. Five9 has a consensus price target of $22.00, indicating a potential upside of 2.18%. Given Five9’s stronger consensus rating and higher possible upside, analysts clearly believe Five9 is more favorable than Workday.
Institutional and Insider Ownership
67.7% of Workday shares are held by institutional investors. Comparatively, 91.9% of Five9 shares are held by institutional investors. 37.7% of Workday shares are held by insiders. Comparatively, 9.1% of Five9 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.
Valuation & Earnings
This table compares Workday and Five9’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Workday||$1.70 billion||13.14||-$242.20 million||($1.80)||-59.94|
|Five9||$179.93 million||6.60||$2.12 million||($0.23)||-93.61|
Five9 has higher revenue, but lower earnings than Workday. Five9 is trading at a lower price-to-earnings ratio than Workday, indicating that it is currently the more affordable of the two stocks.
Workday beats Five9 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.
Five9 Company Profile
Five9 Inc. (Five9) is a provider of cloud software for contact centers. The Company’s purpose-built Virtual Contact Center (VCC) cloud platform delivers a suite of applications that enable the breadth of contact center-related customer service, sales and marketing functions. The Company’s solution, which consists of its VCC cloud platform and applications, allows simultaneous management and optimization of customer interactions across voice, chat, e-mail, Web, social media and mobile channels, either directly or through its application programming interfaces (APIs). The Company’s VCC cloud platform matches each customer interaction with an appropriate agent resource and delivers relevant customer data to the agent in real-time through integrations with adjacent enterprise applications, such as customer relationship management (CRM) software, to optimize the customer experience and agent productivity.
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