In today’s fast-evolving technology landscape, choosing the right software company for investment requires careful analysis. Bentley Systems, Incorporated (BSY) and Dayforce Inc (DAY) both operate in the software application sector but target distinct markets—civil infrastructure engineering and human capital management, respectively. Their innovation strategies and market positions offer unique growth opportunities. This article will explore which company presents the most compelling case for investors seeking long-term value.
Table of contents
Companies Overview
I will begin the comparison between Bentley Systems and Dayforce by providing an overview of these two companies and their main differences.
Bentley Systems Overview
Bentley Systems, Incorporated develops infrastructure engineering software solutions, serving clients in the Americas, Europe, the Middle East, Africa, and Asia-Pacific. Its products focus on open modeling, simulation, project delivery, and asset performance systems for civil, structural, geotechnical, and geospatial professionals. Founded in 1984 and headquartered in Exton, PA, Bentley employs 5,500 staff and trades on NASDAQ with a market cap of $11.4B.
Dayforce Overview
Dayforce Inc operates as a human capital management (HCM) software provider, offering cloud platforms for HR, payroll, benefits, workforce, and talent management primarily in the US, Canada, and internationally. Established in 2013 and based in Minneapolis, MN, Dayforce has 9,600 employees and is listed on the NYSE with a market cap of $11.1B. Its solutions target a broad business market including small businesses through Powerpay.
Key similarities and differences
Both companies operate in the software application industry within the US technology sector and serve a global customer base. Bentley focuses on infrastructure engineering software targeting engineering and construction professionals, while Dayforce specializes in HCM cloud platforms for workforce management and payroll services. Bentley’s workforce is smaller and its products cater to infrastructure projects, contrasting with Dayforce’s larger employee base and emphasis on human capital solutions.
Income Statement Comparison
The table below compares key income statement metrics for Bentley Systems, Incorporated and Dayforce Inc for the fiscal year 2024, providing a clear view of their recent financial performance.
| Metric | Bentley Systems, Incorporated | Dayforce Inc |
|---|---|---|
| Market Cap | 11.4B | 11.1B |
| Revenue | 1.35B | 1.76B |
| EBITDA | 382M | 288M |
| EBIT | 318M | 78.2M |
| Net Income | 242M | 18.1M |
| EPS | 0.75 | 0.11 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Bentley Systems, Incorporated
Bentley Systems showed consistent revenue growth from $801M in 2020 to $1.35B in 2024, with net income rising from $126M to $242M over the same period. Margins remained robust, with gross margin at 80.95% and net margin at 17.35% in 2024. However, the most recent year saw net margin and EPS decline despite a 10.15% revenue increase, indicating margin pressure.
Dayforce Inc
Dayforce’s revenue doubled from $842M in 2020 to $1.76B in 2024, with net income improving from a loss of $4M to a modest $18M profit. Gross margin improved to 46.14%, while EBIT and net margins remained low at 4.44% and 1.03%, respectively. The latest year showed strong revenue growth but significant declines in EBIT and net margin, reflecting operational challenges.
Which one has the stronger fundamentals?
Bentley Systems demonstrates stronger fundamentals with higher and more stable margins, consistent profitability, and favorable overall income growth. Dayforce exhibits impressive revenue and net income growth over the period but struggles with profitability and margin stability, as shown by fluctuating EBIT and net margins. Bentley’s more balanced metrics suggest a steadier financial foundation.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Bentley Systems, Incorporated (BSY) and Dayforce Inc (DAY) for the fiscal year ending 2024, reflecting their latest reported data.
| Ratios | Bentley Systems, Incorporated (BSY) | Dayforce Inc (DAY) |
|---|---|---|
| ROE | 22.6% | 0.7% |
| ROIC | 9.3% | 1.3% |
| P/E | 62.6 | 633.3 |
| P/B | 14.1 | 4.5 |
| Current Ratio | 0.54 | 1.13 |
| Quick Ratio | 0.54 | 1.13 |
| D/E (Debt to Equity) | 1.37 | 0.48 |
| Debt-to-Assets | 42.0% | 13.5% |
| Interest Coverage | 12.2 | 2.56 |
| Asset Turnover | 0.40 | 0.19 |
| Fixed Asset Turnover | 20.5 | 7.46 |
| Payout ratio | 30.7% | 0% |
| Dividend yield | 0.49% | 0% |
Interpretation of the Ratios
Bentley Systems, Incorporated
Bentley Systems shows strong profitability with a favorable net margin of 17.35% and a solid return on equity at 22.55%. However, liquidity ratios like the current and quick ratios are weak at 0.54, signaling potential short-term financial stress. Debt levels are relatively high with a debt-to-equity ratio of 1.37. The company pays dividends, but with a low yield of 0.49%, indicating modest shareholder returns.
Dayforce Inc
Dayforce displays weak profitability metrics, including a net margin of 1.03% and return on equity below 1%, reflecting operational challenges. While its liquidity ratios are neutral to favorable, debt ratios are low, suggesting conservative leverage. The company does not pay dividends, likely focusing on reinvestment and growth, as suggested by its unfavorable earnings and free cash flow yields.
Which one has the best ratios?
Bentley Systems holds stronger profitability and return metrics but struggles with liquidity and leverage, resulting in a slightly unfavorable overall ratio profile. Dayforce shows weaker profitability and returns but benefits from better liquidity and lower debt. Both companies have an equal share of favorable ratios, yet Bentley’s profitability offers a more positive but cautious financial picture.
Strategic Positioning
This section compares the strategic positioning of Bentley Systems and Dayforce, including market position, key segments, and exposure to technological disruption:
Bentley Systems
- Established market presence in infrastructure engineering software with competitive pressure from industry peers.
- Focuses on infrastructure design, modeling, simulation, and project delivery systems serving engineering and geoscience professionals.
- Moderate exposure to technological disruption with emphasis on open modeling and collaboration software innovations.
Dayforce
- Operates in human capital management software with competitive pressure from cloud-based HR platforms.
- Key segments include cloud-based HCM platform, payroll, benefits, and talent management, targeting small to large businesses.
- High exposure to cloud technology disruption with ongoing platform enhancements in workforce and payroll services.
Bentley Systems vs Dayforce Positioning
Bentley Systems adopts a diversified infrastructure software approach with multiple specialized applications, while Dayforce concentrates on cloud HCM solutions. Bentley’s broad engineering focus offers cross-sector integration, whereas Dayforce leverages cloud innovation but is more segment-focused.
Which has the best competitive advantage?
Both companies are slightly unfavorable in moat evaluation; Bentley is shedding value with declining profitability, while Dayforce is also shedding value but shows improving profitability through growing ROIC trends.
Stock Comparison
The past year has seen both Bentley Systems, Incorporated and Dayforce Inc stocks experience predominantly bearish trends, with Bentley Systems showing a sharper decline and decelerating losses, while Dayforce’s recent slight recovery contrasts its overall mild downtrend.
Trend Analysis
Bentley Systems, Incorporated (BSY) experienced a bearish trend with a -24.99% price change over the past 12 months, marked by deceleration and a standard deviation of 4.63, hitting highs of 58.59 and lows of 38.15. Recent weeks show continued decline at a -23.0% change with lower volatility.
Dayforce Inc (DAY) also showed a bearish trend with a -3.16% price change over the last year, decelerating losses and higher volatility (7.84 std deviation), reaching a high of 81.14 and a low of 49.46. Recently, the trend turned slightly bullish with a 0.61% gain and minimal volatility.
Comparing both stocks, Dayforce Inc delivered the highest market performance, with a much smaller annual loss and recent positive price movement, outperforming Bentley Systems’ steeper decline.
Target Prices
The target price consensus for Bentley Systems, Incorporated and Dayforce Inc indicates positive analyst expectations.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Bentley Systems, Incorporated | 55 | 45 | 48.75 |
| Dayforce Inc | 70 | 70 | 70 |
Analysts expect Bentley Systems to trade well above its current price of 39.14 USD, suggesting upside potential. Dayforce’s target consensus of 70 USD closely aligns with its current price of 69.16 USD, indicating a stable valuation outlook.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Bentley Systems, Incorporated (BSY) and Dayforce Inc (DAY):
Rating Comparison
BSY Rating
- Rating: B- indicating a very favorable rating.
- Discounted Cash Flow Score: 4, considered favorable for valuation.
- ROE Score: 4, a favorable sign of profit generation efficiency.
- ROA Score: 4, favorable use of assets to generate earnings.
- Debt To Equity Score: 1, very unfavorable, indicating higher financial risk.
- Overall Score: 3, moderate overall financial standing.
DAY Rating
- Rating: C- with a very favorable rating status.
- Discounted Cash Flow Score: 2, indicating moderate valuation potential.
- ROE Score: 1, very unfavorable reflecting lower profitability from equity.
- ROA Score: 1, very unfavorable asset utilization.
- Debt To Equity Score: 2, moderate financial risk.
- Overall Score: 1, very unfavorable overall financial standing.
Which one is the best rated?
Based strictly on the data, BSY holds a stronger position with a B- rating and favorable scores in discounted cash flow, ROE, and ROA, despite a high debt-to-equity risk. DAY’s scores are mostly very unfavorable, leading to a lower overall score and rating.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for the two companies:
BSY Scores
- Altman Z-Score: 3.74, indicating a safe zone with low bankruptcy risk.
- Piotroski Score: 9, considered very strong financial health.
DAY Scores
- Altman Z-Score: 1.24, placing the company in the distress zone, high bankruptcy risk.
- Piotroski Score: 5, reflecting average financial strength.
Which company has the best scores?
BSY outperforms DAY with a safer Altman Z-Score indicating lower bankruptcy risk and a very strong Piotroski Score, compared to DAY’s distress zone and average Piotroski Score.
Grades Comparison
Here is a detailed comparison of the recent grades issued to Bentley Systems, Incorporated and Dayforce Inc:
Bentley Systems, Incorporated Grades
The table below presents recent grades assigned by reputable financial institutions to Bentley Systems, Incorporated:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Piper Sandler | Downgrade | Neutral | 2026-01-13 |
| Barclays | Maintain | Equal Weight | 2026-01-12 |
| RBC Capital | Maintain | Outperform | 2026-01-05 |
| Baird | Maintain | Outperform | 2025-11-06 |
| Rosenblatt | Maintain | Buy | 2025-11-06 |
| Piper Sandler | Maintain | Overweight | 2025-11-06 |
| JP Morgan | Maintain | Neutral | 2025-11-06 |
| Rosenblatt | Upgrade | Buy | 2025-10-17 |
| Piper Sandler | Maintain | Overweight | 2025-08-07 |
| Goldman Sachs | Maintain | Sell | 2025-08-07 |
Bentley Systems exhibits a mixed but generally positive trend, with multiple maintain and outperform ratings, though recent downgrades to neutral suggest some caution.
Dayforce Inc Grades
The table below presents recent grades issued by recognized grading companies to Dayforce Inc:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Needham | Maintain | Hold | 2025-10-30 |
| Stifel | Downgrade | Hold | 2025-09-19 |
| Citigroup | Downgrade | Neutral | 2025-09-17 |
| Wells Fargo | Upgrade | Equal Weight | 2025-08-22 |
| BMO Capital | Downgrade | Market Perform | 2025-08-22 |
| Keybanc | Downgrade | Sector Weight | 2025-08-22 |
| Needham | Downgrade | Hold | 2025-08-22 |
| Barclays | Maintain | Equal Weight | 2025-08-22 |
| Deutsche Bank | Maintain | Hold | 2025-08-22 |
| Jefferies | Maintain | Hold | 2025-08-21 |
Dayforce shows a predominance of hold ratings and several downgrades, indicating more cautious or neutral sentiment from analysts.
Which company has the best grades?
Bentley Systems holds a stronger consensus with multiple buy and outperform ratings, whereas Dayforce predominantly receives hold and neutral grades. Investors might interpret Bentley’s more positive outlook as greater potential upside, while Dayforce’s cautious ratings suggest more conservative expectations.
Strengths and Weaknesses
Below is a comparative overview of the strengths and weaknesses of Bentley Systems, Incorporated (BSY) and Dayforce Inc (DAY) based on recent financial and market performance data.
| Criterion | Bentley Systems, Incorporated (BSY) | Dayforce Inc (DAY) |
|---|---|---|
| Diversification | Moderate diversification with multiple subscription types and professional services, but somewhat reliant on subscription revenues | Focused on cloud-based recurring services with a strong emphasis on recurring revenue streams |
| Profitability | Strong net margin (17.35%) and ROE (22.55%), but ROIC slightly above WACC with declining trend; slightly unfavorable overall | Low profitability margins and returns (net margin 1.03%, ROE 0.71%, ROIC 1.31%) with growing ROIC but still shedding value; unfavorable overall |
| Innovation | Moderate innovation suggested by steady growth in subscription models and professional services | Innovation reflected in cloud service offerings and growing recurring revenue, though profitability remains low |
| Global presence | Established global presence with diverse subscription and license options, including enterprise and perpetual licenses | Primarily cloud-based services, likely targeting global markets but with less product diversification |
| Market Share | Strong presence in engineering software with significant subscription revenue (~$1.27B in 2024) | Growing market share in cloud HR/payroll services with recurring revenue of ~$1.52B in 2024, but high valuation multiples raise concerns |
Key takeaways: Bentley Systems shows solid profitability and a diversified subscription model, though its declining ROIC trend signals caution. Dayforce has promising growth in recurring cloud services with improving ROIC, but low profitability and high valuation suggest higher risk for investors.
Risk Analysis
Below is a summary table of key risks for Bentley Systems, Incorporated (BSY) and Dayforce Inc (DAY) based on the latest 2024 data:
| Metric | Bentley Systems, Incorporated (BSY) | Dayforce Inc (DAY) |
|---|---|---|
| Market Risk | Beta 1.214, high valuation (PE 62.63) increases sensitivity to market swings | Beta 1.181, extremely high PE (633.29) indicates vulnerability to sentiment shifts |
| Debt level | Debt/Equity 1.37 (unfavorable), Debt/assets 41.96% (neutral) | Debt/Equity 0.48 (favorable), Debt/assets 13.52% (favorable) |
| Regulatory Risk | Moderate, typical for software sector | Moderate, with international exposure increasing complexity |
| Operational Risk | Low operational turnover, strong asset management but low liquidity ratios | Operational efficiency concerns, low net margin and ROE indicate challenges |
| Environmental Risk | Low, limited direct environmental impact | Low, as a SaaS business with minimal environmental footprint |
| Geopolitical Risk | Exposure to global infrastructure markets | Exposure to North American and international labor markets |
The most impactful risks are market risk due to high valuations for both companies, amplifying price volatility. Bentley’s higher leverage poses financial risk if market conditions worsen, while Dayforce’s very low profitability and distress-level Altman Z-score highlight operational and financial vulnerability. Investors should carefully monitor market sentiment and financial health trends in these firms.
Which Stock to Choose?
Bentley Systems, Incorporated (BSY) shows favorable income evolution with strong revenue and net income growth over 2020-2024, supported by solid profitability ratios such as a 17.35% net margin and 22.55% ROE. However, its debt levels and liquidity ratios are less favorable, with a net debt to EBITDA of 3.56 and a current ratio of 0.54. The overall financial rating is very favorable (B-), but the global ratios evaluation is slightly unfavorable due to high valuation multiples.
Dayforce Inc (DAY) exhibits favorable revenue and net income growth overall but struggles with profitability, reflected in a low 1.03% net margin and 0.71% ROE. The company maintains better liquidity and lower debt, with a current ratio of 1.13 and net debt to EBITDA of 2.27. Its financial rating is very favorable (C-), yet the global ratios evaluation is unfavorable, impacted by poor profitability and high valuation ratios.
Investors focused on quality and profitability might find BSY’s consistent income growth and strong returns more appealing despite its higher debt and valuation. Conversely, those prioritizing liquidity and lower financial leverage could see DAY’s improving profitability trend and healthier balance sheet as a positive signal. The choice could thus depend on the investor’s risk tolerance and strategic preference.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Bentley Systems, Incorporated and Dayforce Inc to enhance your investment decisions:
