Verint Systems (NASDAQ:VRNT) and Workday (NASDAQ:WDAY) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, earnings, risk, profitability, analyst recommendations and dividends.
Profitability
This table compares Verint Systems and Workday's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Verint Systems | 1.51% | 13.19% | 5.33% |
| Workday | -10.77% | -10.56% | -3.90% |
Valuation and Earnings
This table compares Verint Systems and Workday's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Verint Systems | $1.30 billion | 2.91 | $28.68 million | $2.62 | 22.13 |
| Workday | $3.63 billion | 14.04 | $-480,670,000.00 | ($1.42) | -151.32 |
Verint Systems has higher earnings, but lower revenue than Workday. Workday is trading at a lower price-to-earnings ratio than Verint Systems, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
95.9% of Verint Systems shares are held by institutional investors. Comparatively, 68.0% of Workday shares are held by institutional investors. 1.4% of Verint Systems shares are held by company insiders. Comparatively, 26.5% of Workday shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings and price targets for Verint Systems and Workday, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Verint Systems | 0 | 0 | 6 | 0 | 3.00 |
| Workday | 2 | 12 | 18 | 1 | 2.55 |
Verint Systems currently has a consensus price target of $60.1667, indicating a potential upside of 3.79%. Workday has a consensus price target of $239.00, indicating a potential upside of 11.22%. Given Workday's higher possible upside, analysts plainly believe Workday is more favorable than Verint Systems.
Risk & Volatility
Verint Systems has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Workday has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500.
Summary
Verint Systems beats Workday on 8 of the 15 factors compared between the two stocks.
