Head-To-Head Survey: Workiva (NYSE:WK) and HubSpot (NYSE:HUBS)

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

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HubSpot 0 7 13 0 2.65
Workiva 1 0 4 0 2.60

HubSpot currently has a consensus price target of $189.76, suggesting a potential upside of 5.35%. Workiva has a consensus price target of $41.60, suggesting a potential downside of 27.66%. Given HubSpot’s stronger consensus rating and higher possible upside, equities research analysts clearly believe HubSpot is more favorable than Workiva.

Valuation & Earnings

This table compares HubSpot and Workiva’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HubSpot $512.98 million 14.78 -$63.82 million ($1.02) -176.59
Workiva $244.34 million 10.63 -$50.07 million ($0.93) -61.84

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

Insider & Institutional Ownership

94.6% of HubSpot shares are owned by institutional investors. Comparatively, 51.5% of Workiva shares are owned by institutional investors. 8.3% of HubSpot shares are owned by company insiders. Comparatively, 18.5% of Workiva shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

HubSpot has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500. Comparatively, Workiva has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
HubSpot -10.81% -10.68% -3.70%
Workiva -18.83% N/A -17.66%

Summary

HubSpot beats Workiva on 9 of the 14 factors compared between the two stocks.

HubSpot Company Profile

HubSpot, Inc. provides a cloud-based marketing and sales software platform for businesses in the Americas, Europe, and the Asia Pacific. The company's software platform includes integrated applications, such as customer relationship management, search engine optimization, blogging, Website content management, messaging, chatbots, social media, marketing automation, email, predictive lead scoring, sales productivity, ticketing and helpdesk tools, customer NPS surveys, analytics, and reporting. It also offers professional, as well as phone and/or email and chat based support services. It serves mid-market business-to-business companies. The company markets its products through inbound go-to-market approach, marketing agency, and sales partners. HubSpot, Inc. was founded in 2005 and is headquartered in Cambridge, Massachusetts.

Workiva Company Profile

Workiva Inc. provides cloud-based solutions for connected data, reporting, and compliance worldwide. The company offers Wdesk, a platform that provides data collection and linking, data integrations, controlled collaboration, granular permissions, process management, and full audit trail services; and Wdata, which includes data preparation tools, data connectors, and application programming interfaces that enable customers to create direct connections to their data. It serves public and private companies, government agencies, and higher-education institutions. The company was founded in 2008 and is headquartered in Ames, Iowa.

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