Reviewing Calix (NYSE:CALX) and Workday (NASDAQ:WDAY)

Calix (NYSE:CALX) and Workday (NASDAQ:WDAY) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.

Insider and Institutional Ownership

98.1% of Calix shares are owned by institutional investors. Comparatively, 89.8% of Workday shares are owned by institutional investors. 17.4% of Calix shares are owned by insiders. Comparatively, 18.6% of Workday shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Calix has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Workday has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Calix	0	4	6	0	2.60
Workday	1	15	18	1	2.54

Calix presently has a consensus target price of $67.00, suggesting a potential upside of 81.43%. Workday has a consensus target price of $185.03, suggesting a potential upside of 28.24%. Given Calix’s stronger consensus rating and higher probable upside, equities analysts plainly believe Calix is more favorable than Workday.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Calix	3.20%	4.30%	3.52%
Workday	8.60%	14.75%	6.87%

Valuation and Earnings

This table compares Calix and Workday”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Calix	$1.00 billion	2.36	$17.88 million	$0.48	76.94
Workday	$9.55 billion	3.73	$693.00 million	$3.20	45.09

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

Summary

Workday beats Calix on 10 of the 15 factors compared between the two stocks.

About Calix

Calix, Inc., together with its subsidiaries, engages in the provision of cloud and software platforms, and systems and services in the United States, rest of Americas, Europe, the Middle East, Africa, and the Asia Pacific. Its cloud and software platforms, and systems and services enable broadband service providers (BSPs) to provide a range of services. The company provides Calix Cloud platform, a role-based analytics platform comprising Calix Engagement Cloud, Calix Service Cloud, and Calix Operations Cloud, which are configurable to display role-based insights and enable BSPs to anticipate and target new revenue-generating services and applications through mobile application, such as CommandIQ for residents and CommandWorx for businesses; Calix Intelligent Access EDGE, an access network solution for automated and intelligent networks; and Calix Revenue EDGE, a premises solution for subscriber managed services. It also offers SmartLife managed services, including SmartHome managed services and applications to enhance, operate and secure the connected experience of subscribers in their home; SmartTown managed services that reimagine community Wi-Fi as a ubiquitous, secure, and managed experience across a BSP's footprint; and SmartBiz managed services that address the business networking and productivity needs of business owners with an all-in-one managed service. In addition, the company provides Wi-Fi systems under GigaSpire and GigaPro brands to be ready for deployment as a complete subscriber experience solution for BSP's residential and business subscribers. It offers its products through its direct sales force and resellers. The company was incorporated in 1999 and is headquartered in San Jose, California.

About Workday

Workday, Inc. provides enterprise cloud applications in the United States and internationally. Its applications help its customers to plan, execute, analyze, and extend to other applications and environments to manage their business and operations. The company offers a suite of financial management applications to maintain accounting information in the general ledger; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights; enhance financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations. It also provides spend management solutions that help organizations to streamline supplier selection and contracts, manage indirect spend, and build and execute sourcing events, such as requests for proposals; expense management solutions to submit and approve expenses; and a suite of human capital management applications that enables HR teams to hire, onboard, pay, develop, reskill, and provide employee experiences. In addition, the company offers planning applications; and applications for analytics and reporting comprising augmented analytics to surface insights to the line of business in simple-to-understand stories, machine learning to drive efficiency and automation, and benchmarks to compare performance against other companies. Further, it provides supply chain and inventory solutions to healthcare organizations; solutions to manage the end-to-end student and faculty lifecycle; and Workday Extend for customers and their developers to build custom applications. It serves professional and business services, financial services, healthcare, education, government, technology, media, retail, and hospitality industries. The company was formerly known as North Tahoe Power Tools, Inc. and changed its name to Workday, Inc. in July 2005. Workday, Inc. was incorporated in 2005 and is headquartered in Pleasanton, California.