In the dynamic landscape of technology, Intuit Inc. (INTU) and Workday, Inc. (WDAY) stand out as key players in the software application sector. Both companies provide innovative solutions that cater to financial management and enterprise resource planning, making them particularly relevant for comparison. Their market overlap, along with their distinct innovation strategies, provides valuable insights for investors. Join me as we delve into the strengths and potential of these companies to determine which one might be the more compelling addition to your investment portfolio.
Table of contents
Company Overview
Intuit Inc. Overview
Intuit Inc. is a leading provider of financial management and compliance solutions, catering primarily to consumers, small businesses, and accounting professionals. Founded in 1983 and headquartered in Mountain View, California, Intuit operates through four segments: Small Business & Self-Employed, Consumer, Credit Karma, and ProConnect. Its flagship products, such as QuickBooks and TurboTax, empower users with tools for accounting, tax preparation, and personal finance management. With a market capitalization of approximately $177B, Intuit has solidified its position in the technology sector, emphasizing innovation in cloud-based services. The company’s commitment to financial empowerment and user-friendly solutions has made it a trusted partner for millions.
Workday, Inc. Overview
Workday, Inc., founded in 2005 and based in Pleasanton, California, specializes in enterprise cloud applications for finance and human capital management. With a market cap of about $58B, Workday provides organizations with the tools needed to manage financial processes, human resources, and analytics seamlessly. Its comprehensive suite of applications enables real-time insights and operational efficiency, making it an essential player in sectors such as healthcare, education, and professional services. The company is recognized for its innovative approach to cloud solutions, helping businesses navigate complex financial landscapes while enhancing employee experiences.
Key similarities and differences
Both Intuit and Workday operate within the software application industry, focusing on financial management solutions. However, Intuit primarily targets small businesses and individual consumers, while Workday caters to larger enterprises with a broader suite of human capital management and financial applications. Their approaches to cloud technology also differ, with Intuit emphasizing ease of use for smaller entities, whereas Workday provides more complex solutions tailored for large organizations.
Income Statement Comparison
The following table provides a side-by-side comparison of the most recent income statements for Intuit Inc. and Workday, Inc., highlighting their financial metrics for fiscal year 2025.
| Metric | Intuit Inc. (INTU) | Workday, Inc. (WDAY) |
|---|---|---|
| Market Cap | 177B | 58B |
| Revenue | 18.83B | 8.42B |
| EBITDA | 5.89B | 1.08B |
| EBIT | 5.08B | 0.75B |
| Net Income | 3.87B | 0.53B |
| EPS | 13.82 | 1.98 |
| Fiscal Year | 2025 | 2025 |
Interpretation of Income Statement
In fiscal year 2025, Intuit demonstrated a robust revenue growth of approximately 15.1% compared to the previous year, while Workday experienced a significant increase of 17.0%. Intuit’s net income also saw a healthy rise of around 30.5%, reinforcing its stable profitability. Workday’s net income remained positive after a loss in the prior year, indicating a promising turnaround. Margins for both companies exhibited improvement, with Intuit benefiting from operational efficiencies and Workday recovering from previous setbacks, suggesting a cautiously optimistic outlook for future performance.
Financial Ratios Comparison
In this section, I present a comparative analysis of the most recent revenue and financial ratios for two companies, Intuit Inc. (INTU) and Workday, Inc. (WDAY).
| Metric | INTU | WDAY |
|---|---|---|
| ROE | 19.63% | 5.82% |
| ROIC | 14.78% | 3.22% |
| P/E | 56.82 | 132.15 |
| P/B | 11.15 | 7.69 |
| Current Ratio | 1.36 | 1.85 |
| Quick Ratio | 1.36 | 1.85 |
| D/E | 0.34 | 0.37 |
| Debt-to-Assets | 17.96% | 18.70% |
| Interest Coverage | 19.93 | 4.30 |
| Asset Turnover | 0.51 | 0.47 |
| Fixed Asset Turnover | 12.54 | 5.34 |
| Payout Ratio | 30.73% | 0% |
| Dividend Yield | 0.54% | 0% |
Interpretation of Financial Ratios
Intuit shows stronger financial health with a higher ROE (19.63%) and ROIC (14.78%), indicating effective use of equity and capital. In contrast, Workday’s ratios reflect weaker performance, especially with a P/E ratio of 132.15, suggesting high valuation relative to earnings. While both companies maintain adequate liquidity with solid current and quick ratios, Workday’s lower interest coverage ratio raises concerns about its ability to meet debt obligations. Overall, INTU appears to be the stronger investment option at this time.
Dividend and Shareholder Returns
Intuit Inc. (INTU) pays dividends with a payout ratio of 30.7%, yielding about 0.54%. The dividend per share has seen consistent growth, supported by healthy free cash flow. However, risks include potential unsustainability if earnings decline sharply. In contrast, Workday, Inc. (WDAY) does not pay dividends, focusing on reinvestment for growth and innovation during its high-growth phase. While this strategy may limit immediate returns, it aligns with long-term shareholder value creation. Overall, INTU’s dividends and WDAY’s reinvestment both aim for sustainable growth, albeit through different approaches.
Strategic Positioning
Intuit Inc. (INTU) holds a substantial market share in financial management software, particularly through its QuickBooks offerings. With a market cap of $177B and a competitive edge over its peers, the company faces moderate pressure from emerging fintech solutions. Workday, Inc. (WDAY), valued at $58B, specializes in enterprise cloud applications. While it remains a strong player in the HCM and financial management sectors, it must continuously innovate to counter technological disruptions in a rapidly evolving market landscape.
Stock Comparison
In analyzing the weekly stock price movements for Intuit Inc. (INTU) and Workday, Inc. (WDAY) over the past year, we observe significant price fluctuations that delineate the trading dynamics of each company. Notably, INTU has experienced a bullish trend, while WDAY has faced a bearish trajectory, underscoring the contrasting performances of these stocks.
Trend Analysis
For Intuit Inc. (INTU), the overall price change over the past year is +7.65%, indicating a bullish trend despite a recent decline of -1.85% from September 14, 2025, to November 30, 2025. The stock recorded notable highs of 785.95 and lows of 561.53, with a standard deviation of 50.79 reflecting considerable volatility. The trend shows signs of deceleration.
Conversely, Workday, Inc. (WDAY) has seen a significant price change of -18.88% over the past year, establishing a bearish trend. In the recent period from September 14, 2025, to November 30, 2025, WDAY’s price further decreased by -3.48%. The stock reached highs of 305.88 and lows of 209.48, with a standard deviation of 21.84 indicating some volatility. The trend also displays deceleration.
In summary, INTU’s stock demonstrates resilience in the face of recent downturns, while WDAY’s consistent decline warrants caution for potential investors.
Analyst Opinions
Recent analyst recommendations for Intuit Inc. (INTU) and Workday, Inc. (WDAY) both carry a “B” rating, suggesting a buy or hold. Analysts have noted INTU’s strong return on assets (5) and favorable discounted cash flow score (4), indicating solid financial health. Similarly, WDAY benefits from a robust return on assets (4) and a good discounted cash flow score (4). Both companies show promise, yet the consensus leans towards a cautious buy for the current year, reflecting confidence while acknowledging market conditions.
Stock Grades
As we analyze the latest stock ratings for Intuit Inc. (INTU) and Workday, Inc. (WDAY), several key insights emerge from the evaluations provided by reputable grading companies.
Intuit Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Wells Fargo | maintain | Overweight | 2025-11-21 |
| BMO Capital | maintain | Outperform | 2025-11-21 |
| RBC Capital | maintain | Outperform | 2025-11-21 |
| Evercore ISI Group | maintain | Outperform | 2025-11-18 |
| RBC Capital | maintain | Outperform | 2025-09-02 |
| UBS | maintain | Neutral | 2025-08-22 |
| Stifel | maintain | Buy | 2025-08-22 |
| Barclays | maintain | Overweight | 2025-08-22 |
| Morgan Stanley | maintain | Overweight | 2025-08-22 |
| Keybanc | maintain | Overweight | 2025-08-22 |
Workday, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | maintain | Overweight | 2025-11-26 |
| Citigroup | maintain | Neutral | 2025-11-26 |
| RBC Capital | maintain | Outperform | 2025-11-26 |
| Bernstein | maintain | Outperform | 2025-11-26 |
| Stifel | maintain | Hold | 2025-11-26 |
| Citizens | maintain | Market Outperform | 2025-11-26 |
| Wells Fargo | maintain | Overweight | 2025-11-26 |
| Morgan Stanley | maintain | Equal Weight | 2025-11-26 |
| Guggenheim | maintain | Buy | 2025-11-26 |
| DA Davidson | maintain | Neutral | 2025-11-26 |
Overall, both Intuit Inc. and Workday, Inc. maintain solid ratings across multiple firms, indicating a strong position in the market. Intuit’s grades lean towards “Overweight” and “Outperform,” while Workday shows a mix of “Overweight,” “Outperform,” and a few “Neutral” ratings, reflecting a generally favorable sentiment among analysts.
Target Prices
The latest consensus target prices from analysts for Intuit Inc. (INTU) and Workday, Inc. (WDAY) indicate positive expectations for both companies.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Intuit Inc. | 880 | 725 | 825.56 |
| Workday, Inc. | 320 | 235 | 276.29 |
For Intuit Inc., the consensus target price of 825.56 is significantly above its current trading price of 634.08, suggesting a potential upside. Similarly, Workday’s consensus target of 276.29 is also higher than its current price of 215.62, indicating positive analyst sentiment.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Intuit Inc. (INTU) and Workday, Inc. (WDAY) based on the most recent data available.
| Criterion | Intuit Inc. (INTU) | Workday, Inc. (WDAY) |
|---|---|---|
| Diversification | Strong product diversification across segments | Limited product range focused on enterprise applications |
| Profitability | High net profit margin (20.55%) | Low net profit margin (6.25%) |
| Innovation | Continual investment in new technologies | Focused on specific technology enhancements |
| Global presence | Strong international presence | Expanding but primarily U.S.-focused |
| Market Share | Significant leader in financial software | Niche player in enterprise cloud applications |
| Debt level | Manageable debt-to-equity ratio (0.34) | Higher debt-to-equity ratio (0.37) |
In summary, Intuit shows robust profitability and diversification, whereas Workday is still establishing its market presence and profitability. This analysis suggests that Intuit may be a safer investment, but Workday’s growth potential shouldn’t be overlooked.
Risk Analysis
The table below outlines the potential risks associated with investing in Intuit Inc. and Workday, Inc.
| Metric | Intuit Inc. (INTU) | Workday, Inc. (WDAY) |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Moderate | Moderate |
| Operational Risk | Low | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Low | Moderate |
In summary, both companies face notable market and operational risks. Workday exhibits higher volatility and operational concerns, with a significant recent drop in profit margins, highlighting potential challenges ahead.
Which one to choose?
When comparing Intuit Inc. (INTU) and Workday, Inc. (WDAY), it is clear that INTU has stronger fundamentals. INTU boasts a higher gross profit margin at 80.8% compared to WDAY’s 75.4%, and it shows better profitability with a net profit margin of 20.5% versus WDAY’s 6.3%. The price-to-earnings ratio for INTU is 56.8, whereas WDAY’s is significantly higher at 132.2, indicating that INTU may offer better value. Analysts rate both companies with a “B” grade, but INTU shows a more favorable stock trend, being bullish with a recent price increase of 7.65% compared to WDAY’s bearish trend with a decline of 18.88%.
Investors focused on growth may prefer INTU for its solid profitability and upward momentum, while those prioritizing value may consider WDAY, albeit with higher risk.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Intuit Inc. and Workday, Inc. to enhance your investment decisions:
