Zendesk (ZEN) vs. Workday (WDAY) Head-To-Head Survey

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Zendesk and Workday, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zendesk 0 2 13 0 2.87
Workday 1 18 16 0 2.43

Zendesk currently has a consensus price target of $40.43, suggesting a potential upside of 0.37%. Workday has a consensus price target of $108.37, suggesting a potential downside of 6.28%. Given Zendesk’s stronger consensus rating and higher probable upside, analysts clearly believe Zendesk is more favorable than Workday.

Risk and Volatility

Zendesk has a beta of 1.87, suggesting that its share price is 87% 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 & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zendesk $430.49 million 9.50 -$110.64 million ($1.11) -36.29
Workday $1.57 billion 15.47 -$408.27 million ($1.44) -80.30

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

Profitability

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

Net Margins Return on Equity Return on Assets
Zendesk -25.70% -32.88% -19.76%
Workday -16.91% -19.73% -7.37%

Institutional & Insider Ownership

93.9% of Zendesk shares are held by institutional investors. Comparatively, 66.9% of Workday shares are held by institutional investors. 5.3% of Zendesk shares are held by company insiders. Comparatively, 37.7% of Workday shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Workday beats Zendesk on 8 of the 14 factors compared between the two stocks.

Zendesk Company Profile

Zendesk, Inc. (Zendesk) is a software development company. The Zendesk family of products is built to work together to help organizations understand and manage customer relationships. All Zendesk products share a common interface and are being developed to support a shared services infrastructure and common customer data platform. Zendesk’s products are developed using agile software techniques, and are designed to incorporate and innovate on customer feedback obtained through beta and Early Access Programs (EAPs). Its family of products includes Zendesk Support, Zendesk Chat, Zendesk Talk, Zendesk Help Center, Zendesk Message, Zendesk Explore and Zendesk Connect. Zendesk’s developer platform allows organizations to extend the functionality of its family of products and customize the experience for their employees and customers. Key components of Zendesk’s developer platform include Zendesk Embeddables, Zendesk application program interfaces (APIs) and Zendesk Applications.

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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