Workday, Inc. (WDAY) vs Zoom Communications, Inc. (ZM)

Workday, Inc. and Zoom Communications, Inc. are both Software Application companies. Workday, Inc. is the larger, with a market value of $46.1B against $26.5B — 1.7× the size. Zoom Communications, Inc. trades at the lower P/E: 8.1× against 38.2×. Workday, Inc. grew revenue faster over the last twelve months: 13.4% against 5.04%. Zoom Communications, Inc. has the higher net margin (65.2% vs 12.3%) and the higher return on invested capital (18.3% vs 11.2%). Across the 22 metrics below, Zoom Communications, Inc. leads on 19 and Workday, Inc. on 3.

Valuation

Metric WDAY ZM Software Application median
P/E 38.16 8.12 24.79
P/S 4.57 5.26 2.67
P/B 7.18 2.32 3.01
Price to free cash flow 16.33 13.64 16.59
EV/EBITDA 26.07 12.13 14.40
EV/Sales 4.53 3.81 2.62
Earnings yield 2.62% 12.31% 0.00%
Free cash flow yield 6.12% 7.33% 1.91%

Profitability

Metric WDAY ZM Software Application median
Gross margin 75.80% 77.30% 67.03%
Operating margin 10.68% 23.73% 0.00%
Net margin 12.32% 65.19% 0.00%
Free cash flow margin 28.01% 38.55% 4.32%
Return on equity 16.01% 32.14% 0.00%
Return on assets 7.40% 26.43% 0.00%
Return on invested capital 11.22% 18.27% 0.00%

Growth

Metric WDAY ZM Software Application median
Revenue growth (TTM) 13.35% 5.04% 12.40%
EPS growth (last fiscal year) 32.82% 92.52% —
Revenue growth, 5-year CAGR 17.21% 12.92% 13.72%
Net income growth, 5-year CAGR 0.00% 23.12% 0.00%

Health

Metric WDAY ZM Software Application median
Debt to equity 0.46 0.00 0.02
Current ratio 0.91 3.83 1.55
Net debt to EBITDA (1.81) (5.08) 0.06

Dividend

Metric WDAY ZM Software Application median
Dividend yield — — 1.25%
Payout ratio 0.00 0.00 0.00

Size

Metric WDAY ZM Software Application median
Market cap 46.09b 26.49b 396.11m

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