PTC (NASDAQ: PTC) and Workday (NASDAQ:WDAY) are both mid-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.

Earnings & Valuation

This table compares PTC and Workday’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PTC $1.16 billion 6.32 $6.23 million $0.05 1,273.85
Workday $1.57 billion 13.65 -$408.27 million ($1.80) -57.22

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

Profitability

This table compares PTC and Workday’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PTC 0.54% 8.08% 2.98%
Workday -19.78% -24.07% -9.38%

Risk and Volatility

PTC has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500. Comparatively, Workday has a beta of 1.87, indicating that its stock price is 87% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for PTC and Workday, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PTC 1 3 14 0 2.72
Workday 4 21 13 0 2.24

PTC currently has a consensus target price of $65.88, suggesting a potential upside of 3.46%. Workday has a consensus target price of $103.27, suggesting a potential upside of 0.27%. Given PTC’s stronger consensus rating and higher possible upside, equities research analysts plainly believe PTC is more favorable than Workday.

Institutional and Insider Ownership

98.0% of PTC shares are owned by institutional investors. Comparatively, 67.6% of Workday shares are owned by institutional investors. 1.0% of PTC shares are owned by company insiders. Comparatively, 37.7% of Workday shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

PTC beats Workday on 9 of the 13 factors compared between the two stocks.

About PTC

PTC Inc. is a global computer software and services company. The Company offers a portfolio of computer-aided design (CAD) modeling, product lifecycle management (PLM) and service lifecycle management (SLM) solutions for manufacturers to create, operate, and service products. It offers a suite of Internet of Things (IoT) solutions that enables its customers to connect, manage and analyze data, and create applications. Its segments include the Solutions Group, the IoT Group and Professional Services. The Solutions Group segment includes its CAD, PLM and SLM products. The IoT Group segment includes its IoT, analytics and augmented reality (AR) solutions. The Professional Services segment includes consulting, implementation and training business. Its IoT products include ThingWorx, KEPServerEX, Vuforia Studio and Vuforia. Its CAD products include Creo and Mathcad. Its PLM products include Windchill, Integrity, Navigate and Creo View. Its SLM products include Servigistics and Arbortext.

About Workday

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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