Head-To-Head Contrast: Workday (NASDAQ:WDAY) versus 8X8 (NASDAQ:EGHT)

8X8 (NASDAQ:EGHT) and Workday (NASDAQ:WDAY) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.

Valuation and Earnings

This table compares 8X8 and Workday”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
8X8	$723.57 million	0.33	-$67.59 million	($0.55)	-3.47
Workday	$7.86 billion	8.36	$1.38 billion	$5.55	44.71

Workday has higher revenue and earnings than 8X8. 8X8 is trading at a lower price-to-earnings ratio than Workday, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

8X8 has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500. Comparatively, Workday has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.

Institutional & Insider Ownership

94.0% of 8X8 shares are held by institutional investors. Comparatively, 89.8% of Workday shares are held by institutional investors. 1.1% of 8X8 shares are held by insiders. Comparatively, 20.0% of Workday shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares 8X8 and Workday’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
8X8	-8.65%	-6.51%	-0.88%
Workday	19.59%	5.34%	2.66%

Analyst Ratings

This is a breakdown of recent ratings and price targets for 8X8 and Workday, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
8X8	2	1	3	0	2.17
Workday	1	6	20	0	2.70

8X8 currently has a consensus target price of $2.83, indicating a potential upside of 48.34%. Workday has a consensus target price of $288.15, indicating a potential upside of 16.13%. Given 8X8’s higher probable upside, research analysts clearly believe 8X8 is more favorable than Workday.

Summary

Workday beats 8X8 on 11 of the 14 factors compared between the two stocks.

About 8X8

8×8, Inc. provides voice, video, chat, contact center, and enterprise-class application programmable interface (API) Software-as-a-Service solutions for small business, mid-market, enterprise customers, government agencies, and other organizations worldwide. It offers 8×8 Work, a self-contained end-to-end united communications solution that delivers voice services, secure video meetings, and unified messaging, including direct messages, public and private team messaging rooms, and peer-to-peer short and multimedia messaging; 8×8 Contact Center, a cloud-based contact center as-a-service solution; and 8×8 Engage, an artificial intelligence-powered solution that equips customer-facing employees outside the contact center with the tools and capabilities to deliver successful customer engagements. The company also provides 8×8 Communications Platform as-a-Service, a communications platform-as-a-service capabilities that enable businesses to directly integrate its platform services within their websites, mobile apps, and business systems for personalized customer engagement; and Solutions for Microsoft Teams. In addition, it offers and X1 through X4 and X5 through X8, which provide enterprise-grade voice, unified communications, and video meetings and team collaboration, and contact center solutions. The company markets its services to end users through industry conferences, trade shows, webinars, and local and digital advertising channels. 8×8, Inc. was incorporated in 1987 and is headquartered in Campbell, California.

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.