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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Workday and Great Elm Capital Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Workday 4 20 13 0 2.24
Great Elm Capital Group 0 0 0 0 N/A

Workday presently has a consensus price target of $98.21, suggesting a potential downside of 9.77%. Given Workday’s higher probable upside, research analysts clearly believe Workday is more favorable than Great Elm Capital Group.

Earnings and Valuation

This table compares Workday and Great Elm Capital Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Workday $1.70 billion 13.25 -$242.20 million ($1.80) -60.47
Great Elm Capital Group $2.86 million 26.35 -$6.89 million N/A N/A

Great Elm Capital Group has higher revenue, but lower earnings than Workday.

Profitability

This table compares Workday and Great Elm Capital Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Workday -19.78% -24.88% -9.59%
Great Elm Capital Group N/A -33.37% -21.05%

Insider & Institutional Ownership

40.2% of Great Elm Capital Group shares are owned by institutional investors. 37.7% of Workday shares are owned by company insiders. Comparatively, 5.0% of Great Elm Capital Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Workday beats Great Elm Capital Group on 6 of the 10 factors compared between the two stocks.

About Workday

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.

About Great Elm Capital Group

Great Elm Capital Group, Inc., formerly Unwired Planet, Inc., is a holding company. The Company makes investments in businesses and assets in various industries. The Company’s investment for long-term value creation is in the asset management business. The Company continues to explore other opportunities in the investment management business, including other business development companies (BDCs) that trade at a discount to their net asset value. The Company intends to build a diversified investment company consisting of the following three business lines: investment management, financial products and merchant banking. It is embarking on a program of creating bespoke financial products and creating a pipeline of acquisition opportunities. The Company’s subsidiary is Great Elm Capital Corporation (GECC).

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