Financial Review: FRONTEO (FTEO) and Workday (WDAY)
Workday (NASDAQ:WDAY) and FRONTEO (NASDAQ:FTEO) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.
Insider and Institutional Ownership
67.5% of Workday shares are owned by institutional investors. 33.6% of Workday shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Workday and FRONTEO’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Workday||$2.14 billion||12.99||-$321.22 million||($1.27)||-101.03|
|FRONTEO||$111.36 million||2.77||-$6.25 million||N/A||N/A|
FRONTEO has lower revenue, but higher earnings than Workday.
Risk and Volatility
Workday has a beta of 2.01, indicating that its stock price is 101% more volatile than the S&P 500. Comparatively, FRONTEO has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.
This is a breakdown of current ratings for Workday and FRONTEO, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Workday currently has a consensus price target of $146.03, suggesting a potential upside of 13.81%. FRONTEO has a consensus price target of $23.00, suggesting a potential upside of 41.98%. Given FRONTEO’s stronger consensus rating and higher possible upside, analysts plainly believe FRONTEO is more favorable than Workday.
This table compares Workday and FRONTEO’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
FRONTEO beats Workday on 7 of the 13 factors compared between the two stocks.
Workday, Inc. provides enterprise cloud applications for finance and human resources worldwide. It provides applications for customers to manage critical business functions to optimize their financial and human capital resources. The company offers Workday Financial Management application that provides functions of general ledger, accounting, accounts payable and receivable, cash and asset management, employee expense and revenue management, projects, procurement, inventory, and grants management. It also provides Workday Human Capital Management application, which includes human resources management, such as workforce lifecycle and organization management, compensation, absence, and employee benefits administration; and global talent management comprising goal and performance management, succession planning, and career and development planning. In addition, the company offers Workday Financial Performance Management application; Workday Learning application; Workday Payroll application for enterprise payroll; Workday Planning application to create, collaborate, and take action on financial and workforce plans; Workday Time Tracking application, which automates workforce management processes; and Workday Recruiting, an application to support candidates, hiring managers, the interview team, and recruiters. Further, it provides Prism Analytics that enables customers to bring together various data; Workday Professional Services Automation application to supports the billable projects lifecycle; and Workday Student, a student and faculty lifecycle information system. The company serves technology, financial services, business and professional services, healthcare and life sciences, manufacturing, retail and hospitality, education, and government and non-profit 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 founded in 2005 and is headquartered in Pleasanton, California.
FRONTEO, Inc. provides Asian-language eDiscovery solutions and services primarily in the United States, Europe, and Asia. The company operates in two segments, Legal Tech Services and Artificial Intelligence (AI) Solutions Services. It has eDiscovery and forensic information documented in Japanese, Korean, Chinese, and English. The company assists clients involved in cross-border litigation, administrative proceedings, and internal investigations, including those related to antitrust investigations, intellectual property litigation, the Foreign Corrupt Practices Act, and product liability investigations. It also provides Lit i View, an online eDiscovery software, which handles Asian-language characters, encoding schemes, and native file systems; and Intelligence Cloud solution to maintain client data during and after a particular litigation or investigation, and data and documents in a relational database of its clients' data and documents. In addition, the company offers electronic data forensic investigation solutions and services that enables the preservation, analysis, processing, and production of electronically stored information in connection with fraud and corporate information leakage; forensic tools; and Lit i View XAMINER, a digital forensic software, and other related hardware and software products. Further, it helps to create document management procedures; conduct corporate risk audits; and comply with legal requirements to provide information to stakeholders. Additionally, the company provides AI solutions in the fields of business intelligence, healthcare, and digital communications. It serves enterprises, government agencies, law firms, and other organizations under the FRONTEO, KIBIT, and Landscaping brands. The company was formerly known as UBIC, Inc. and changed its name to FRONTEO, Inc. in July 2016. FRONTEO, Inc. was founded in 2003 and is headquartered in Tokyo, Japan.
Receive News & Ratings for Workday Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Workday and related companies with MarketBeat.com's FREE daily email newsletter.