Head-To-Head Analysis: Informatica (NYSE:INFA) versus Workiva (NYSE:WK)

Informatica (NYSE:INFA) and Workiva (NYSE:WK) are both mid-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Valuation & Earnings

This table compares Informatica and Workiva’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Informatica	$1.60 billion	5.64	-$125.28 million	($0.46)	-66.33
Workiva	$630.04 million	6.95	-$127.53 million	($2.37)	-33.74

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

Profitability

This table compares Informatica and Workiva’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Informatica	-7.85%	4.29%	1.79%
Workiva	-20.24%	N/A	-12.16%

Insider & Institutional Ownership

98.5% of Informatica shares are owned by institutional investors. Comparatively, 92.2% of Workiva shares are owned by institutional investors. 53.9% of Informatica shares are owned by insiders. Comparatively, 5.7% of Workiva shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Informatica and Workiva, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Informatica	0	5	6	0	2.55
Workiva	0	1	5	0	2.83

Informatica presently has a consensus price target of $35.45, suggesting a potential upside of 16.44%. Workiva has a consensus price target of $111.63, suggesting a potential upside of 40.02%. Given Workiva’s stronger consensus rating and higher probable upside, analysts plainly believe Workiva is more favorable than Informatica.

Volatility & Risk

Informatica has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Workiva has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.

Summary

Informatica beats Workiva on 10 of the 14 factors compared between the two stocks.

About Informatica

Informatica Inc. develops an artificial intelligence-powered platform that connects, manages, and unifies data across multi-vendor, multi-cloud, and hybrid systems at enterprise scale worldwide. Its platform includes a suite of interoperable data management products, including data integration products to ingest, transform, and integrate data; API and application integration products that enable users to create and manage APIs and integration processes for app-to-app synchronization, business process orchestration, B2B partner management, application development, and API management; data quality and observability products to profile, cleanse, standardize, observe, and monitor data to deliver accurate, complete, and consistent data; and master data management products to create an authoritative single source of truth of business-critical data. The company's platform also includes customer and business 360 application that allow business analysts to create 360-degree views of business data domains like customer, product, supplier, reference, and finance with simplified business user experiences; data catalog products that enables customers to quickly find, access, and understand enterprise data using a simple Google-like search experience; governance and privacy products that help users define policies, govern data, and ensure compliance with industry and corporate policies; and a data marketplace that delivers cloud shopping experience for data consumers and enables data sharing and AI models across organizations to facilitate data-driven decision making. It also offers maintenance and professional services. The company sells its products through its direct sales team. The company was founded in 1993 and is headquartered in Redwood City, California.

About Workiva

Workiva Inc., together with its subsidiaries, provides cloud-based reporting solutions in the United States and internationally. The company offers Workiva platform, a multi-tenant cloud software that provides data linking capabilities; audit trail services; administrators access management; and allows customers to connect data from multiple enterprise resource planning, human capital management, and customer relationship management systems, as well as other third-party cloud and on-premise applications. It serves public and private companies, government agencies, and higher-education institutions. Workiva Inc. was founded in 2008 and is headquartered in Ames, Iowa.