Alight vs Workday Which Outperforms?

Alight Inc. and Workday Inc. are two prominent players in the human resources and finance software industry. Alight offers cloud-based solutions for HR and financial management, catering to a wide range of industries around the world. On the other hand, Workday specializes in enterprise cloud applications for finance and HR. Both companies have seen significant growth in recent years, but their stocks have had different trajectories, with Alight facing some challenges while Workday continues to be a strong performer in the market.

Alight or Workday?

When comparing Alight and Workday, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Alight and Workday.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Alight has a dividend yield of 0.56%, while Workday has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Alight reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Workday reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Alight P/E ratio at -15.77 and Workday's P/E ratio at 44.82. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Alight P/B ratio is 0.90 while Workday's P/B ratio is 8.42.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Alight has seen a 5-year revenue growth of 0.31%, while Workday's is 1.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alight's ROE at -5.58% and Workday's ROE at 19.52%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $7.09 for Alight and $270.56 for Workday. Over the past year, Alight's prices ranged from $6.15 to $10.38, with a yearly change of 68.78%. Workday's prices fluctuated between $199.81 and $311.28, with a yearly change of 55.79%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.