Financial Survey: Workday (WDAY) vs. Mulesoft (MULE)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Workday -16.91% -19.73% -7.37%
Mulesoft -25.84% -49.63% -18.06%

Valuation & Earnings

This table compares Workday and Mulesoft’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Workday $1.57 billion 15.29 -$408.27 million ($1.44) -79.33
Mulesoft $187.74 million 17.09 -$49.59 million ($0.72) -34.29

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

Institutional and Insider Ownership

66.9% of Workday shares are owned by institutional investors. Comparatively, 23.2% of Mulesoft shares are owned by institutional investors. 37.7% of Workday shares are owned by company 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Workday and Mulesoft, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Workday 3 19 14 0 2.31
Mulesoft 0 3 7 0 2.70

Workday presently has a consensus price target of $105.98, indicating a potential downside of 7.23%. Mulesoft has a consensus price target of $27.75, indicating a potential upside of 12.39%. Given Mulesoft’s stronger consensus rating and higher probable upside, analysts plainly believe Mulesoft is more favorable than Workday.

Summary

Workday beats Mulesoft on 7 of the 13 factors compared between the two stocks.

Workday Company Profile

Workday, Inc. is a provider of enterprise cloud applications for finance and human resources. The Company delivers financial management, human capital management and analytics applications designed for various companies, educational institutions and government agencies. As part of its applications, the Company provides embedded analytics that capture the content and context of everyday business events, facilitating informed decision-making from wherever users are working. Its applications include Workday Financial Management, Workday Human Capital Management (HCM) and Other Applications. It also provides open, standards-based Web-services application programming interfaces, and pre-built packaged integrations and connectors. Workday Financial Management is a unified application with a range of financial capabilities, relevant analytics and metrics, and auditable process management. Workday HCM allows an organization to staff, pay, organize and develop its global workforce.

Mulesoft Company Profile

MuleSoft, Inc. is engaged in providing a software platform that connects a range of technologies. The Company enables organizations to manage and secure the flow of data between all systems in the enterprise. The Company offers organizations to create agile infrastructures. The Company has developed Anypoint Platform. The Company’s customers use its Anypoint Platform to connect their applications, data, and devices into an application network where systems are pluggable instead of glued together with custom integration code. The application network enables a self-serve infrastructure through discoverable building blocks, or nodes, that can be used and reused to rapidly compose applications. With an application network built with Anypoint Platform, organizations can transform into composable enterprises.

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