Workday (NASDAQ:WDAY) and Bottomline Technologies (NASDAQ:EPAY) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, valuation, risk, dividends and analyst recommendations.
Earnings & Valuation
This table compares Workday and Bottomline Technologies' revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Workday | $3.63 billion | 12.21 | $-480,670,000.00 | ($1.42) | -132.71 |
| Bottomline Technologies | $421.96 million | 5.21 | $9.43 million | $0.97 | 51.63 |
Bottomline Technologies has lower revenue, but higher earnings than Workday. Workday is trading at a lower price-to-earnings ratio than Bottomline Technologies, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
67.1% of Workday shares are held by institutional investors. Comparatively, 91.0% of Bottomline Technologies shares are held by institutional investors. 29.8% of Workday shares are held by company insiders. Comparatively, 2.6% of Bottomline Technologies shares are held 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.
Profitability
This table compares Workday and Bottomline Technologies' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Workday | -13.68% | -14.70% | -5.40% |
| Bottomline Technologies | -0.61% | 4.17% | 2.27% |
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Workday and Bottomline Technologies, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Workday | 1 | 14 | 16 | 1 | 2.53 |
| Bottomline Technologies | 1 | 1 | 5 | 0 | 2.57 |
Workday presently has a consensus target price of $196.2857, indicating a potential upside of 4.16%. Bottomline Technologies has a consensus target price of $49.75, indicating a potential downside of 0.66%. Given Workday's higher possible upside, equities analysts plainly believe Workday is more favorable than Bottomline Technologies.
Risk and Volatility
Workday has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500. Comparatively, Bottomline Technologies has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500.
Summary
Workday beats Bottomline Technologies on 8 of the 15 factors compared between the two stocks.
