ServiceNow vs Workday

ServiceNow and Workday are two prominent tech companies in the SaaS industry, both known for their cloud-based platforms that provide enterprise solutions for organizations. ServiceNow focuses on IT service management, while Workday specializes in human resources and financial management. Both companies have seen significant growth in recent years, but their stocks have shown different trajectories. ServiceNow has outperformed Workday in terms of stock performance, with a more steady growth and strong financials. Investors should carefully analyze both companies before making investment decisions.

ServiceNow or Workday?

When comparing ServiceNow 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 ServiceNow 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. ServiceNow has a dividend yield of -%, while Workday has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ServiceNow 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 ServiceNow P/E ratio at 166.52 and Workday's P/E ratio at 42.15. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ServiceNow P/B ratio is 22.02 while Workday's P/B ratio is 7.78.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ServiceNow has seen a 5-year revenue growth of 2.00%, while Workday's is 1.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ServiceNow's ROE at 14.51% and Workday's ROE at 19.75%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $926.66 for ServiceNow and $242.06 for Workday. Over the past year, ServiceNow's prices ranged from $527.24 to $949.59, with a yearly change of 80.11%. 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.