Financial Review: Cyberark Software (CYBR) versus Workday (NASDAQ:WDAY)

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

Institutional & Insider Ownership

76.7% of Cyberark Software shares are owned by institutional investors. Comparatively, 67.0% of Workday shares are owned by institutional investors. 37.7% of Workday shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for Cyberark Software and Workday, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cyberark Software 0 8 8 0 2.50
Workday 1 19 15 0 2.40

Cyberark Software currently has a consensus price target of $48.93, indicating a potential upside of 10.58%. Workday has a consensus price target of $107.65, indicating a potential downside of 8.36%. Given Cyberark Software’s stronger consensus rating and higher probable upside, equities analysts clearly believe Cyberark Software is more favorable than Workday.

Profitability

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

Net Margins Return on Equity Return on Assets
Cyberark Software 9.24% 7.19% 5.33%
Workday -16.91% -19.73% -7.37%

Risk and Volatility

Cyberark Software has a beta of 2.45, suggesting that its share price is 145% more volatile than the S&P 500. Comparatively, Workday has a beta of 2.01, suggesting that its share price is 101% more volatile than the S&P 500.

Valuation and Earnings

This table compares Cyberark Software 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
Cyberark Software $216.61 million 7.10 $28.12 million $0.63 70.24
Workday $1.57 billion 15.72 -$408.27 million ($1.44) -81.58

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

Summary

Cyberark Software beats Workday on 10 of the 14 factors compared between the two stocks.

Cyberark Software Company Profile

CyberArk Software Ltd is an Israel-based provider of information technology (IT) security solutions that protects organizations from cyber-attacks. The Company’s software solutions are focused on protecting privileged accounts, which have become a critical target in the lifecycle of cyber-attacks. The Company’s Privileged Account Security Solution consists of various products, such as Shares Technology Platform, Enterprise Password Vault, SSH Key Manager, Privileged Session Manager, Privileged Threat Analytics, Application Identity Manager, CyberArk-Conjur, Endpoint Privilege Manager and On-Demand Privileges Manager. The Company’s products provide protection against external and internal cyber threats and enables detection and neutralization of attacks. The Company’s Enterprise Password Vault provides customers with a tool to manage and protect all privileged accounts across an entire organization, including physical, virtual or cloud-based assets.

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.

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