Head-To-Head Review: Workday (NASDAQ:WDAY) and Xperi (NYSE:XPER)

Workday (NASDAQ:WDAY) and Xperi (NYSE:XPER) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.

Insider & Institutional Ownership

89.8% of Workday shares are held by institutional investors. Comparatively, 94.3% of Xperi shares are held by institutional investors. 18.6% of Workday shares are held by insiders. Comparatively, 3.2% of Xperi shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Workday has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Xperi has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Workday and Xperi, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Workday	2	17	20	0	2.46
Xperi	1	1	2	0	2.25

Workday presently has a consensus target price of $206.34, suggesting a potential upside of 5.39%. Xperi has a consensus target price of $11.00, suggesting a potential upside of 89.66%. Given Xperi’s higher probable upside, analysts plainly believe Xperi is more favorable than Workday.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Workday	12.32%	20.95%	9.22%
Xperi	-7.12%	4.04%	2.72%

Earnings and Valuation

This table compares Workday and Xperi”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Workday	$9.55 billion	5.06	$693.00 million	$4.93	39.71
Xperi	$448.11 million	0.63	-$56.34 million	($0.70)	-8.29

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

Summary

Workday beats Xperi on 11 of the 14 factors compared between the two stocks.

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.

About Xperi

Xperi Holding Corporation, together with its subsidiaries, operates as a consumer and entertainment product/solutions licensing company worldwide. It operates through two segments, Product, and Intellectual Property Licensing. The company invents, develops, and delivers various technologies. It licenses audio, digital radio, imaging, edge-based machine learning, and multi-channel video user experience solutions to consumer electronics customers, automotive manufacturers, or supply chain partners. The company also provides licensing to multichannel video programming distributors, OTT video service providers, consumer electronics manufacturers, social media, and other new media companies in media industry; and memory, sensors, RF component, and foundry companies in semiconductor industry. It provides its technologies under the DTS, HD Radio, IMAX Enhanced, Invensas, TiVo, and Perceive brands. The company is headquartered in San Jose, California.