CarGurus (NASDAQ:CARG) and Workday (NASDAQ:WDAY) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, dividends, profitability and institutional ownership.
Institutional & Insider Ownership
63.3% of CarGurus shares are held by institutional investors. Comparatively, 67.6% of Workday shares are held by institutional investors. 51.0% of CarGurus shares are held by company insiders. Comparatively, 33.6% of Workday shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares CarGurus and Workday’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CarGurus||$316.86 million||14.63||$13.19 million||$0.12||352.92|
|Workday||$2.14 billion||12.74||-$321.22 million||($1.27)||-99.09|
CarGurus has higher earnings, but lower revenue than Workday. Workday is trading at a lower price-to-earnings ratio than CarGurus, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations and price targets for CarGurus and Workday, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CarGurus presently has a consensus price target of $43.20, indicating a potential upside of 2.01%. Workday has a consensus price target of $147.14, indicating a potential upside of 16.93%. Given Workday’s higher probable upside, analysts plainly believe Workday is more favorable than CarGurus.
This table compares CarGurus and Workday’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
CarGurus beats Workday on 9 of the 13 factors compared between the two stocks.
CarGurus, Inc. operates an online automotive marketplace connecting buyers and sellers of new and used cars worldwide. The company's marketplace enables users with third-party validation on pricing, dealer reputation, and other information. As of June 30, 2017, it had an active dealer network of approximately 40,000 dealers; and approximately 5.4 million car listings. The company was founded in 2005 and is headquartered in Cambridge, Massachusetts..
Workday, Inc. provides enterprise cloud applications for finance and human resources worldwide. It provides applications for customers to manage critical business functions to optimize their financial and human capital resources. The company offers Workday Financial Management application that provides functions of general ledger, accounting, accounts payable and receivable, cash and asset management, employee expense and revenue management, projects, procurement, inventory, and grants management. It also provides Workday Human Capital Management application, which includes human resources management, such as workforce lifecycle and organization management, compensation, absence, and employee benefits administration; and global talent management comprising goal and performance management, succession planning, and career and development planning. In addition, the company offers Workday Financial Performance Management application; Workday Learning application; Workday Payroll application for enterprise payroll; Workday Planning application to create, collaborate, and take action on financial and workforce plans; Workday Time Tracking application, which automates workforce management processes; and Workday Recruiting, an application to support candidates, hiring managers, the interview team, and recruiters. Further, it provides Prism Analytics that enables customers to bring together various data; Workday Professional Services Automation application to supports the billable projects lifecycle; and Workday Student, a student and faculty lifecycle information system. The company serves technology, financial services, business and professional services, healthcare and life sciences, manufacturing, retail and hospitality, education, and government and non-profit 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 founded in 2005 and is headquartered in Pleasanton, California.
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