Home > Comparison > Technology > FICO vs DAY
The strategic rivalry between Fair Isaac Corporation and Dayforce Inc defines the current trajectory of the technology software-application sector. Fair Isaac operates as a data-driven analytics powerhouse specializing in decision management and scoring solutions. In contrast, Dayforce offers a cloud-based human capital management platform focused on workforce and payroll services. This head-to-head showcases a battle between advanced analytics and cloud HCM innovation. This analysis will identify which model offers superior risk-adjusted returns for diversified investors.
Table of contents
Companies Overview
Fair Isaac Corporation and Dayforce Inc stand as major players shaping enterprise software markets. Both leverage advanced technology to drive business efficiency and decision-making.
Fair Isaac Corporation: Analytics Pioneer for Decision Automation
Fair Isaac Corporation dominates the analytics and decision management software space. It generates revenue from its Scores segment, offering business and consumer scoring solutions, and its Software segment, delivering decision management tools for fraud detection, marketing, and compliance. In 2026, the company focuses on expanding its modular FICO Platform to support diverse advanced analytics and decision use cases globally.
Dayforce Inc: Human Capital Management Innovator
Dayforce Inc leads in cloud-based human capital management (HCM) software. Its core revenue comes from Dayforce, a comprehensive platform covering HR, payroll, benefits, and talent management, alongside Powerpay for small businesses. In 2026, Dayforce prioritizes enhancing its cloud offerings and expanding payroll bureau services to strengthen its footprint in the US and international markets.
Strategic Collision: Similarities & Divergences
Both firms emphasize software that automates complex business processes, yet Fair Isaac centers on decision analytics, while Dayforce focuses on workforce and payroll management. Their primary battleground is enterprise software adoption, where they compete for client dependency on integrated platforms. Investors will note Fair Isaac’s analytical depth contrasts with Dayforce’s broader human capital focus, shaping distinct risk and growth profiles.
Income Statement Comparison
The following data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Fair Isaac Corporation (FICO) | Dayforce Inc (DAY) |
|---|---|---|
| Revenue | 1.99B | 1.76B |
| Cost of Revenue | 354M | 948M |
| Operating Expenses | 712M | 708M |
| Gross Profit | 1.64B | 812M |
| EBITDA | 951M | 288M |
| EBIT | 936M | 78.2M |
| Interest Expense | 134M | 40.6M |
| Net Income | 652M | 18.1M |
| EPS | 26.9 | 0.11 |
| Fiscal Year | 2025 | 2024 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals which company transforms revenue into profit more efficiently, exposing the strength of their business models.
Fair Isaac Corporation Analysis
Fair Isaac Corporation (FICO) shows consistent revenue growth, reaching $1.99B in 2025 from $1.52B in 2023. Net income climbs robustly to $652M, with gross margins holding a strong 82.2%. The net margin at 32.8% demonstrates exceptional profitability, underpinned by disciplined operating expense control and steady momentum in earnings per share.
Dayforce Inc Analysis
Dayforce Inc (DAY) doubles revenue from $842M in 2020 to $1.76B in 2024, reflecting rapid scale. However, net income remains low at $18M in 2024, with a thin net margin of just 1.03%. Gross margin at 46.1% is moderate, while operating expenses grow disproportionally, eroding EBIT and net margin growth despite impressive top-line expansion.
Margin Power vs. Revenue Scale
FICO outperforms DAY in converting revenue into profit, boasting superior gross and net margins alongside healthy earnings growth. DAY’s rapid revenue increase struggles to translate into strong profitability due to high costs. Investors seeking efficiency and margin strength find FICO’s profile more attractive than DAY’s growth-at-all-costs approach.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of the companies compared below:
| Ratios | Fair Isaac Corporation (FICO) | Dayforce Inc (DAY) |
|---|---|---|
| ROE | -37.3% | 0.71% |
| ROIC | 52.96% | 1.31% |
| P/E | 55.6 | 633.3 |
| P/B | -20.8 | 4.50 |
| Current Ratio | 0.83 | 1.13 |
| Quick Ratio | 0.83 | 1.13 |
| D/E (Debt-to-Equity) | -1.76 | 0.48 |
| Debt-to-Assets | 164.6% | 13.5% |
| Interest Coverage | 6.92 | 2.56 |
| Asset Turnover | 1.07 | 0.19 |
| Fixed Asset Turnover | 21.20 | 7.46 |
| Payout ratio | 0% | 0% |
| Dividend yield | 0% | 0% |
| Fiscal Year | 2025 | 2024 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios serve as a company’s DNA, exposing hidden risks and revealing operational strengths that shape investor decisions.
Fair Isaac Corporation
Fair Isaac exhibits robust operational efficiency with a high net margin of 32.75% and a strong ROIC at 52.96%, despite a negative ROE of -37.34%. Its valuation appears stretched, marked by a P/E of 55.64. The company lacks dividends, instead reinvesting heavily in R&D, fueling growth and innovation.
Dayforce Inc
Dayforce struggles with profitability, showing a weak net margin of 1.03% and a low ROIC of 1.31%. Its valuation is extreme, with a P/E soaring at 633.29, signaling overvaluation. The company pays no dividend and demonstrates limited operational efficiency, reflecting challenges in converting assets into returns.
Premium Valuation vs. Operational Risks
Fair Isaac balances operational excellence and elevated valuation better than Dayforce, which faces profitability and valuation headwinds. Investors seeking growth with solid efficiency might prefer Fair Isaac’s profile, while cautious investors may view Dayforce as carrying higher risk.
Which one offers the Superior Shareholder Reward?
Fair Isaac Corporation (FICO) and Dayforce Inc (DAY) both forgo dividends, focusing on reinvestment and buybacks. FICO boasts zero payout but delivers strong free cash flow (31.8/share) and a robust buyback program supporting shareholder value. DAY’s free cash flow is modest (1.1/share), and buybacks are limited. FICO’s capital allocation leverages high margins and operating cash flow, making its model more sustainable and rewarding over time. I conclude FICO offers a superior total return profile in 2026, driven by efficient reinvestment and aggressive buybacks.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of both firms across key financial metrics:
Fair Isaac Corporation (FICO) shows a more balanced profile with moderate DCF and very favorable ROA scores but suffers from very unfavorable debt and valuation metrics. Dayforce Inc (DAY) relies on a moderate debt position and slightly better price-to-book valuation but lags significantly in asset efficiency and overall scores. FICO’s strength lies in asset utilization, while DAY’s profile lacks balance.
Bankruptcy Risk: Solvency Showdown
FICO’s Altman Z-Score of 12.2 signals a robust safety margin, while DAY’s 1.25 places it in distress territory. This gap highlights FICO’s superior long-term survival prospects in this cycle:
Financial Health: Quality of Operations
FICO scores a strong 7 on the Piotroski F-Score, indicating solid operational health. DAY’s average score of 5 suggests caution due to weaker internal financial metrics:
How are the two companies positioned?
This section dissects the operational DNA of Fair Isaac Corporation and Dayforce Inc by comparing their revenue distribution and internal strengths and weaknesses. The goal is to confront their economic moats and identify which business model offers the most resilient and sustainable competitive advantage in today’s market.
Revenue Segmentation: The Strategic Mix
This visual comparison dissects how Fair Isaac Corporation and Dayforce Inc diversify their income streams and where their primary sector bets lie:
Fair Isaac Corporation anchors revenue in two main segments: Scores at $1.17B and Applications at $822M in 2025, showing moderate diversification. Dayforce Inc leans heavily on Cloud Dayforce Recurring Services with $1.34B, dwarfing smaller segments like Cloud Powerpay at $103M. Dayforce’s reliance on recurring cloud revenue signals ecosystem lock-in but carries concentration risk. Fair Isaac’s split suggests balanced growth across software and scoring solutions.
Strengths and Weaknesses Comparison
This table compares the Strengths and Weaknesses of Fair Isaac Corporation and Dayforce Inc:
Fair Isaac Corporation Strengths
- High net margin at 32.75%
- Strong ROIC of 52.96% above WACC
- Favorable asset and fixed asset turnover
- Low debt-to-equity ratio
- Growing revenue in Americas and Scores segments
Dayforce Inc Strengths
- Favorable debt-to-equity and debt-to-assets ratios
- Positive quick ratio above 1
- Solid fixed asset turnover
- Recurring revenue model with cloud services
- Geographic presence in US and Canada
Fair Isaac Corporation Weaknesses
- Negative ROE at -37.34%
- High debt-to-assets ratio at 164.6%
- Low current ratio below 1
- High P/E ratio at 55.64
- No dividend yield
- Geographic revenue concentrated in Americas
Dayforce Inc Weaknesses
- Low profitability with net margin at 1.03%
- ROE and ROIC near zero
- High P/E ratio at 633.29
- Unfavorable asset turnover and interest coverage
- No dividend yield
Fair Isaac demonstrates strong profitability and capital efficiency but faces risks from weak liquidity and high leverage. Dayforce shows financial conservatism but suffers from limited profitability and efficiency challenges. Both companies have geographic concentration that may impact growth strategies.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the only thing protecting long-term profits from the erosion of competition. Let’s dissect the competitive advantages of these two software firms:
Fair Isaac Corporation (FICO): Analytics with Intangible Asset Moat
FICO’s moat stems from its proprietary analytics and scoring models, creating high switching costs. The firm boasts an 82% gross margin and 47% EBIT margin, reflecting durable profitability. In 2026, expanding advanced decision management software could deepen its moat amid rising data complexity.
Dayforce Inc (DAY): Cloud Platform with Growing Operational Leverage
Dayforce leverages a cloud-based human capital management platform, building network effects but with lower margins (46% gross, 4.4% EBIT). Unlike FICO, its ROIC lags WACC, showing value destruction. However, rapid revenue growth and increased profitability signal potential moat development through scale and product integration.
Moat Battle: Proprietary Analytics vs. Emerging Cloud Ecosystem
FICO holds a deeper, well-established moat with strong ROIC exceeding WACC by 44%, ensuring value creation and margin stability. DAY’s expanding platform shows promise but currently destroys value, limiting its competitive durability. FICO is better positioned to defend market share with proven economic profits.
Which stock offers better returns?
Over the past year, Fair Isaac Corporation and Dayforce Inc have shown distinct price movements, with FICO experiencing stronger gains amid decelerating momentum, while DAY posted modest growth with stable trading dynamics.
Trend Comparison
Fair Isaac Corporation’s stock rose 12.51% over 12 months, marking a bullish trend with decelerating momentum. It peaked at 2375 and troughed at 1110, showing recent weakness with a -15.98% decline.
Dayforce Inc gained 3.51% in the same period, reflecting a mild bullish trend with deceleration. Its price ranged from 49.46 to 81.14, and recent performance showed a flat 0.39% increase.
FICO outperformed DAY by a significant margin in overall returns despite recent softness, delivering the highest market performance over the past year.
Target Prices
Analysts project a bullish outlook for Fair Isaac Corporation and Dayforce Inc, with target prices significantly above current levels.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Fair Isaac Corporation | 1,640 | 2,400 | 2,115 |
| Dayforce Inc | 70 | 70 | 70 |
Fair Isaac’s consensus target of 2,115 implies a 44% upside versus the 1,463 current price, signaling strong growth expectations. Dayforce’s target price matches its current price, reflecting market stability or limited near-term upside.
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How do institutions grade them?
Fair Isaac Corporation Grades
The latest institutional grades for Fair Isaac Corporation are shown below:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Needham | Maintain | Buy | 2026-01-29 |
| Jefferies | Maintain | Buy | 2026-01-16 |
| Wells Fargo | Maintain | Overweight | 2026-01-14 |
| JP Morgan | Maintain | Neutral | 2025-11-06 |
| Baird | Maintain | Outperform | 2025-11-06 |
| Jefferies | Maintain | Buy | 2025-11-06 |
| BMO Capital | Maintain | Outperform | 2025-11-06 |
| Wells Fargo | Maintain | Overweight | 2025-10-14 |
| Barclays | Maintain | Overweight | 2025-10-02 |
| Needham | Maintain | Buy | 2025-10-02 |
Dayforce Inc Grades
The latest institutional grades for Dayforce Inc are shown below:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Needham | Maintain | Hold | 2025-10-30 |
| Stifel | Downgrade | Hold | 2025-09-19 |
| Citigroup | Downgrade | Neutral | 2025-09-17 |
| Deutsche Bank | Maintain | Hold | 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 |
| Wells Fargo | Upgrade | Equal Weight | 2025-08-22 |
| Jefferies | Maintain | Hold | 2025-08-21 |
Which company has the best grades?
Fair Isaac Corporation consistently earns Buy, Outperform, and Overweight grades, signaling stronger institutional confidence. Dayforce Inc faces multiple downgrades to Hold and Neutral, indicating weaker sentiment. This disparity may affect investor perception and capital flows.
Risks specific to each company
The following categories identify critical pressure points and systemic threats facing both firms in the 2026 market environment:
1. Market & Competition
Fair Isaac Corporation
- Operates in competitive analytics and decision software with strong market presence and innovation edge.
Dayforce Inc
- Faces intense competition in crowded HCM cloud software with pressure on pricing and customer retention.
2. Capital Structure & Debt
Fair Isaac Corporation
- High debt-to-assets ratio at 164.6% signals leveraged balance sheet risk despite favorable interest coverage.
Dayforce Inc
- Maintains low debt-to-assets at 13.52%, indicating conservative leverage and moderate financial risk.
3. Stock Volatility
Fair Isaac Corporation
- Beta of 1.293 suggests above-market volatility; price range wide from 1300 to 2217.6 USD.
Dayforce Inc
- Beta of 1.181 indicates moderate volatility; narrower price band from 48.0 to 72.3 USD.
4. Regulatory & Legal
Fair Isaac Corporation
- Subject to data privacy and compliance risks due to analytics and consumer scoring operations.
Dayforce Inc
- Faces regulatory scrutiny in payroll and benefits processing, with potential compliance complexity.
5. Supply Chain & Operations
Fair Isaac Corporation
- Relies on software development and cloud infrastructure; operational disruptions could impact service delivery.
Dayforce Inc
- Operational risks stem from cloud platform integration and third-party channel dependencies.
6. ESG & Climate Transition
Fair Isaac Corporation
- Limited direct exposure but must address data center energy use and governance expectations.
Dayforce Inc
- ESG risks include workforce diversity and sustainable cloud operations pressures.
7. Geopolitical Exposure
Fair Isaac Corporation
- Global presence exposes it to geopolitical tensions affecting data flows and regulatory environments.
Dayforce Inc
- Primarily North American but expanding internationally, exposing it to cross-border regulatory and political risks.
Which company shows a better risk-adjusted profile?
Fair Isaac Corporation’s most impactful risk is its highly leveraged balance sheet, with debt-to-assets at 164.6%, raising solvency concerns despite strong operational metrics. Dayforce Inc struggles mainly with weak profitability and financial stability, reflected by a distress-level Altman Z-score of 1.25. I see Fair Isaac as having a better risk-adjusted profile, buoyed by a safe-zone Altman Z-score of 12.2 and strong operational efficiency. However, Dayforce’s moderate debt and improving Piotroski score signal potential upside if profitability and cash flow stabilize. The recent data highlight Fair Isaac’s leverage as a clear red flag, warranting close monitoring amid market volatility.
Final Verdict: Which stock to choose?
Fair Isaac Corporation (FICO) excels as a value creator with a durable competitive moat anchored in its ability to generate high returns on invested capital. Its superpower lies in unmatched operational efficiency and strong cash flow generation. A point of vigilance is its stretched liquidity position, which could pressure short-term flexibility. FICO suits aggressive growth portfolios that tolerate near-term volatility for long-term value.
Dayforce Inc (DAY) offers a strategic moat in its niche cloud-based workforce management solutions, providing recurring revenue stability. Though its profitability metrics lag, DAY presents a safer balance sheet profile relative to FICO, with moderate leverage and better short-term liquidity. This stock fits growth-at-a-reasonable-price (GARP) investors who prioritize steady expansion over peak margins.
If you prioritize durable value creation and operational excellence, FICO is the compelling choice due to its strong economic moat and cash machine profile. However, if you seek stability and steady recurring revenues with less financial risk, DAY offers better safety and growth potential. Both have distinct risk-reward profiles tailored to different investor strategies.
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 Fair Isaac Corporation and Dayforce Inc to enhance your investment decisions:
