Reviewing Intuit (INTU) & Workiva (WK)

Intuit (NASDAQ: INTU) and Workiva (NYSE:WK) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Insider & Institutional Ownership

86.3% of Intuit shares are owned by institutional investors. Comparatively, 35.2% of Workiva shares are owned by institutional investors. 5.6% of Intuit shares are owned by insiders. Comparatively, 33.3% of Workiva shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Intuit and Workiva, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intuit 2 5 12 0 2.53
Workiva 0 3 3 0 2.50

Intuit currently has a consensus target price of $152.65, indicating a potential downside of 4.39%. Workiva has a consensus target price of $21.83, indicating a potential upside of 1.08%. Given Workiva’s higher possible upside, analysts clearly believe Workiva is more favorable than Intuit.

Earnings & Valuation

This table compares Intuit and Workiva’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Intuit $5.18 billion 7.88 $971.00 million $3.77 42.35
Workiva $178.65 million 5.07 -$43.97 million ($0.91) -23.74

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

Profitability

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

Net Margins Return on Equity Return on Assets
Intuit 18.62% 77.56% 22.36%
Workiva -18.83% -13,251.94% -25.39%

Dividends

Intuit pays an annual dividend of $1.56 per share and has a dividend yield of 1.0%. Workiva does not pay a dividend. Intuit pays out 41.4% of its earnings in the form of a dividend.

Summary

Intuit beats Workiva on 11 of the 14 factors compared between the two stocks.

About Intuit

Intuit Inc. is a provider of business and financial management solutions for small businesses, consumers and accounting professionals. The Company operates through three segments: Small Business, Consumer Tax and ProConnect. The Small Business segment serves and advises small businesses and the accounting professionals, and includes QuickBooks financial and business management online services and desktop software, payroll solutions, and payment processing solutions. The Small Business segment also includes third-party applications that integrate with the Company’s offerings. The Consumer Tax segment targets consumers and includes TurboTax products and services, which enable individuals to prepare and file their own federal and state personal income tax returns. The ProConnect segment targets professional accountants in the United States and Canada. Its ProConnect professional tax offerings include Lacerte, ProSeries, ProFile and ProConnect Tax Online.

About Workiva

Workiva Inc. provides enterprises with cloud solutions for improving productivity, accountability and insight into business data. The Company created Wdesk, a collaborative work management platform for organizations to collect, link, report and analyze their business data. Wdesk’s word processing, spreadsheet and presentation applications are integrated and built upon a data management engine, offering synchronized data, controlled collaboration, granular permissions and a full audit trail. As of December 31, 2016, it provided its platform to over 2,700 organizations. Wdesk enables coworkers to create, review and publish data-linked documents and reports with control, accuracy and productivity. With Wdesk data linking, changes are automatically updated in all linked instances, including numbers, text, charts and graphics throughout a customer’s spreadsheets, word-processing documents and presentation decks in the Wdesk platform.

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