Head to Head Contrast: Workday (NASDAQ:WDAY) and CoreWeave (NASDAQ:CRWV)

CoreWeave (NASDAQ:CRWV) and Workday (NASDAQ:WDAY) are both large-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Institutional and Insider Ownership

89.8% of Workday shares are owned by institutional investors. 19.3% of Workday shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares CoreWeave and Workday”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CoreWeave	N/A	N/A	N/A	($1.45)	-59.14
Workday	$8.45 billion	6.85	$526.00 million	$2.38	91.02

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

Analyst Recommendations

This is a breakdown of current ratings for CoreWeave and Workday, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CoreWeave	3	12	17	2	2.53
Workday	0	12	25	2	2.74

CoreWeave currently has a consensus target price of $129.47, indicating a potential upside of 50.98%. Workday has a consensus target price of $281.16, indicating a potential upside of 29.79%. Given CoreWeave’s higher probable upside, analysts plainly believe CoreWeave is more favorable than Workday.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CoreWeave	N/A	N/A	N/A
Workday	6.95%	10.50%	5.33%

Summary

Workday beats CoreWeave on 10 of the 11 factors compared between the two stocks.

About CoreWeave

CoreWeave, Inc. engages in the powers of the creation and delivery of the intelligence that drives innovation. It offers a solution used by organizations of all sizes that require sophisticated AI computing, from the largest of enterprises to small, well-funded start-ups. The company was founded by Michael Intrator, Brian Venturo, and Brannin McBee on September 21, 2017 and is headquartered in Livingston, NJ.

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.