Workday (NASDAQ:WDAY) versus Life360 (NASDAQ:LIF) Critical Review

Life360 (NASDAQ:LIF) and Workday (NASDAQ:WDAY) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.

Institutional & Insider Ownership

20.0% of Life360 shares are held by institutional investors. Comparatively, 89.8% of Workday shares are held by institutional investors. 8.0% of Life360 shares are held by insiders. Comparatively, 19.3% of Workday shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Life360 and Workday”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Life360	$396.88 million	11.74	-$28.17 million	$0.09	676.56
Workday	$8.45 billion	8.62	$1.38 billion	$1.96	139.71

Workday has higher revenue and earnings than Life360. Workday is trading at a lower price-to-earnings ratio than Life360, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for Life360 and Workday, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Life360	0	0	7	1	3.13
Workday	0	8	21	2	2.81

Life360 presently has a consensus price target of $51.00, indicating a potential downside of 16.24%. Workday has a consensus price target of $293.62, indicating a potential upside of 7.22%. Given Workday’s higher probable upside, analysts plainly believe Workday is more favorable than Life360.

Profitability

This table compares Life360 and Workday’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Life360	-4.72%	-4.03%	-3.16%
Workday	19.86%	6.13%	3.13%

Summary

Workday beats Life360 on 11 of the 14 factors compared between the two stocks.

About Life360

Life360 Inc. is a family connection and safety company. Its business category includes mobile app and Tile tracking devices with a range of services, including location sharing, safe driver reports and crash detection with emergency dispatch. Life360 Inc. is based in SAN FRANCISCO.

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.