Head to Head Review: Temenos Group (OTCMKTS:TMSNY) vs. Workday (NASDAQ:WDAY)

Workday (NASDAQ:WDAY) and Temenos Group (OTCMKTS:TMSNY) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Workday	12.32%	20.95%	9.22%
Temenos Group	17.50%	55.57%	10.62%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Workday and Temenos Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Workday	2	18	20	0	2.45
Temenos Group	0	2	0	2	3.00

Workday currently has a consensus price target of $205.55, indicating a potential upside of 10.16%. Given Workday’s higher possible upside, analysts clearly believe Workday is more favorable than Temenos Group.

Volatility and Risk

Workday has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Temenos Group has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.

Institutional & Insider Ownership

89.8% of Workday shares are held by institutional investors. 18.6% of Workday shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Workday and Temenos Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Workday	$9.55 billion	4.71	$693.00 million	$4.93	37.85
Temenos Group	$1.09 billion	5.23	$280.61 million	$2.83	29.41

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

Summary

Workday beats Temenos Group on 9 of the 15 factors compared between the two stocks.

About Workday

Workday, Inc. provides enterprise cloud applications in the United States and internationally. Its applications help its customers to plan, execute, analyze, and extend to other applications and environments to manage their business and operations. The company offers a suite of financial management applications to maintain accounting information in the general ledger; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights; enhance financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations. It also provides spend management solutions that help organizations to streamline supplier selection and contracts, manage indirect spend, and build and execute sourcing events, such as requests for proposals; expense management solutions to submit and approve expenses; and a suite of human capital management applications that enables HR teams to hire, onboard, pay, develop, reskill, and provide employee experiences. In addition, the company offers planning applications; and applications for analytics and reporting comprising augmented analytics to surface insights to the line of business in simple-to-understand stories, machine learning to drive efficiency and automation, and benchmarks to compare performance against other companies. Further, it provides supply chain and inventory solutions to healthcare organizations; solutions to manage the end-to-end student and faculty lifecycle; and Workday Extend for customers and their developers to build custom applications. It serves professional and business services, financial services, healthcare, education, government, technology, media, retail, and hospitality industries. The company was formerly known as North Tahoe Power Tools, Inc. and changed its name to Workday, Inc. in July 2005. Workday, Inc. was incorporated in 2005 and is headquartered in Pleasanton, California.

About Temenos Group

Temenos AG develops, markets, and sells integrated banking software systems to banking and other financial institutions worldwide. Its Temenos Banking Cloud helps banks to offer open banking services. The company provides Temenos Infinity, a digital banking platform; Temenos Transact, a core banking software for retail, corporate, treasury, wealth, and payments; Temenos Payments, a software-as-a-service payments technology; Temenos Multifonds, a platform for traditional and alternative funds, as well as offers key asset servicing, position keeping, valuation and accounting functions for various structures of pooled vehicles and funds; Temenos Multifonds Navigator, a net asset value shadow, oversight, and contingency solution; and Temenos Quantum, a multi-experience development platform. It also offers Temenos XAI that enables banks to provide individualized customer experiences, drive customer loyalty and profitability, and automate processes; Temenos Financial Crime Mitigation that allows banks and financial institutions to avoid regulatory fines, detect fraud, and mitigate reputational risks; Temenos Analytics, a reporting, analytics, and business intelligence product; Temenos Regulatory Compliance for addressing fraud, remaining compliant with regulations, and managing risks; Temenos Wealth, an integrated portfolio management and securities trading platform for wealth managers and private bankers; and Temenos DataSource, an enterprise data management solution. In addition, it provides various solutions for retail, business, universal, central, Islamic, corporate, and private banking; life and pension; challenger banks and fintechs; wealth management; credit unions; financial inclusion; and asset managers and asset services. The company was formerly known as Temenos Group AG and changed its name to Temenos AG in May 2018. The company was founded in 1993 and is based in Geneva, Switzerland.