In today’s rapidly evolving tech landscape, Intuit Inc. (INTU) and Workday, Inc. (WDAY) emerge as two titans within the software application industry. While both companies provide innovative solutions for business management, they cater to distinct market needs—Intuit focuses on financial management tools for individuals and small businesses, while Workday excels in enterprise-level cloud applications. As we delve into their performance, market strategies, and growth potential, let’s discover which company stands out as the more compelling investment opportunity for you.
Table of contents
Company Overview
Intuit Inc. Overview
Intuit Inc. is a leader in financial management and compliance solutions for a diverse clientele, including consumers, small businesses, and accounting professionals. Founded in 1983 and headquartered in Mountain View, California, the company operates in multiple segments: Small Business & Self-Employed, Consumer, Credit Karma, and ProConnect. Its flagship products, such as QuickBooks and TurboTax, empower users to efficiently manage their finances and tax obligations. With a market capitalization of approximately $181.3B, Intuit continues to innovate in digital finance, providing a seamless experience through its cloud-based services. The company’s commitment to streamlining financial processes positions it as a vital resource in the technology sector.
Workday, Inc. Overview
Workday, Inc., established in 2005 and headquartered in Pleasanton, California, specializes in enterprise cloud applications that facilitate comprehensive financial and human capital management. With a market cap of around $58.7B, Workday’s offerings enable organizations to streamline financial processes and enhance operational efficiency through analytics and reporting tools. Its robust suite of applications serves various industries, including healthcare, technology, and education, making it a significant player in the software application industry. The company’s focus on innovative solutions and customer service positions it well in a competitive landscape.
Key similarities in Intuit and Workday’s business models include their focus on providing software solutions to enhance financial management. However, they differ in their target audiences; Intuit primarily serves individual consumers and small businesses, while Workday targets larger enterprises with comprehensive cloud applications for business operations.
Income Statement Comparison
Below is a comparison of the income statements for Intuit Inc. and Workday, Inc. for the most recent fiscal year, providing a snapshot of their financial performance.
| Metric | Intuit Inc. | Workday, Inc. |
|---|---|---|
| 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 |
Interpretation of Income Statement
In the most recent year, Intuit Inc. demonstrated substantial growth in both revenue and net income, increasing from 16.29B and 2.96B in the previous year, respectively. This reflects a healthy upward trend, with improvements in margins, particularly in EBITDA, which signifies operational efficiency. Conversely, Workday, while showing a rise in revenue from 7.20B to 8.42B, saw a more modest net income growth, indicating challenges in scaling profitability. Overall, Intuit’s performance highlights strong growth potential, whereas Workday’s results suggest a need for strategic adjustments to enhance margins and profitability.
Financial Ratios Comparison
The following table summarizes the most recent revenue and financial ratios for 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% | 20.03% |
| 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’s ratios indicate a strong financial position, particularly with a high ROE and ROIC, suggesting efficient use of equity and capital. The P/E ratio suggests a premium valuation compared to Workday, which shows a concerningly high P/E with losses. Workday’s interest coverage ratio is low, raising concerns about its ability to meet debt obligations. Overall, while Intuit appears solid, Workday’s metrics highlight potential risks that investors should consider.
Dividend and Shareholder Returns
Intuit Inc. (INTU) consistently pays dividends, maintaining a payout ratio of approximately 31% and a dividend yield around 0.54%. The company also engages in share buybacks, enhancing shareholder value. In contrast, Workday, Inc. (WDAY) does not distribute dividends, focusing instead on reinvestment for growth and maintaining a robust buyback program. While INTU’s distributions reflect a sustainable model, WDAY’s strategy aligns with long-term value creation through reinvestment.
Strategic Positioning
Intuit Inc. (INTU) holds a significant market share in the financial management software sector, driven by its robust QuickBooks suite. With a market cap of $181.3B, it faces competitive pressure from Workday, Inc. (WDAY), which specializes in enterprise cloud applications and holds a market cap of $58.7B. Both companies are navigating the technological disruption in their industry, but Intuit’s established customer base and diversified product offerings give it a competitive edge. I remain cautious about market fluctuations and recommend thorough analysis before any investment decisions.
Stock Comparison
In this section, I will analyze the weekly stock price movements of Intuit Inc. (INTU) and Workday, Inc. (WDAY) over the past year, highlighting key price dynamics and trading behaviors.
Trend Analysis
Intuit Inc. (INTU) has exhibited a percentage change of 4.03% over the past year, indicating a bullish trend. However, the trend shows signs of deceleration. The highest price reached was $785.95, while the lowest was $561.53. Recently, from September 7, 2025, to November 23, 2025, the stock experienced a -3.36% decline, with a standard deviation of 17.35, suggesting some volatility.
Workday, Inc. (WDAY), on the other hand, has faced a significant -20.04% decline over the past year, categorizing it as a bearish trend. Similar to INTU, the trend is also in deceleration. WDAY’s stock peaked at $305.88 and hit a low of $209.48. In the recent trend from September 7, 2025, to November 23, 2025, WDAY saw a further decline of -4.48% with a standard deviation of 7.39, reflecting moderate volatility.
In summary, while INTU shows resilience with a bullish long-term trend despite recent fluctuations, WDAY is navigating through a challenging bearish environment, warranting caution for investors considering these stocks for their portfolios.
Analyst Opinions
Recent analyst recommendations for Intuit Inc. (INTU) and Workday, Inc. (WDAY) both indicate a “Buy” rating. Analysts highlight INTU’s strong return on assets (5) and solid cash flow, despite a lower price-to-earnings score (1). Similarly, WDAY is noted for its robust discounted cash flow (4) and return on assets (4), though it also carries a lower price-to-earnings score (1). Overall, the consensus for both companies is a “Buy” for 2025, reflecting confidence in their growth potential and financial health.
Stock Grades
Here are the latest stock ratings from reliable grading companies for Intuit Inc. and Workday, Inc.
Intuit Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Evercore ISI Group | maintain | Outperform | 2025-11-18 |
| RBC Capital | maintain | Outperform | 2025-09-02 |
| JP Morgan | maintain | Overweight | 2025-08-22 |
| Barclays | maintain | Overweight | 2025-08-22 |
| RBC Capital | maintain | Outperform | 2025-08-22 |
| Stifel | maintain | Buy | 2025-08-22 |
| B of A Securities | maintain | Buy | 2025-08-22 |
| Citigroup | maintain | Buy | 2025-08-22 |
| UBS | maintain | Neutral | 2025-08-22 |
| Keybanc | maintain | Overweight | 2025-08-22 |
Workday, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | maintain | Neutral | 2025-11-03 |
| DA Davidson | maintain | Neutral | 2025-09-19 |
| Barclays | maintain | Overweight | 2025-09-18 |
| Guggenheim | upgrade | Buy | 2025-09-18 |
| RBC Capital | maintain | Outperform | 2025-09-17 |
| JMP Securities | maintain | Market Outperform | 2025-09-17 |
| Guggenheim | upgrade | Buy | 2025-09-17 |
| Needham | maintain | Buy | 2025-09-17 |
| Evercore ISI Group | maintain | Outperform | 2025-09-17 |
| TD Cowen | maintain | Buy | 2025-09-17 |
Overall, the grades for both Intuit and Workday reflect a consistent positive sentiment among analysts, with several maintaining their ratings of “Outperform” and “Buy.” Notably, Workday has seen some upgrades, suggesting increasing confidence in its growth potential.
Target Prices
The consensus target prices from analysts indicate a positive outlook for both Intuit Inc. and Workday, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Intuit Inc. | 880 | 725 | 834 |
| Workday, Inc. | 304 | 235 | 271 |
Analysts expect Intuit Inc. to reach a target price of 834, suggesting significant upside potential given its current price of 650.28. Similarly, Workday, Inc. has a consensus target of 271, providing room for growth from its current price of 220.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of Intuit Inc. and Workday, Inc., based on the latest financial data.
| Criterion | Intuit Inc. | Workday, Inc. |
|---|---|---|
| Diversification | High | Moderate |
| Profitability | Strong | Weak |
| Innovation | High | High |
| Global presence | Moderate | Medium |
| Market Share | Strong | Growing |
| Debt level | Low | Moderate |
Key takeaways: Intuit exhibits strong profitability and diversification, making it a robust option for investors. Meanwhile, Workday’s innovation is commendable, yet its profitability remains a concern.
Risk Analysis
The following table outlines the key risks associated with Intuit Inc. (INTU) and Workday, Inc. (WDAY) based on the most recent data available.
| Metric | Intuit Inc. (INTU) | Workday, Inc. (WDAY) |
|---|---|---|
| Market Risk | High, due to volatility in tech sector | Moderate, affected by competition |
| Regulatory Risk | Moderate, faces scrutiny in financial tech | High, compliance with cloud regulations |
| Operational Risk | Moderate, reliance on software performance | High, risks with service delivery |
| Environmental Risk | Low, minimal direct impact | Moderate, potential energy use concerns |
| Geopolitical Risk | Low, primarily US-based | Moderate, global operations may face issues |
In synthesis, the most significant risks for both companies stem from market volatility and regulatory compliance. Intuit faces high market risk, while Workday must navigate complex regulations in the cloud sector.
Which one to choose?
When comparing Intuit Inc. (INTU) and Workday, Inc. (WDAY), Intuit appears to offer stronger fundamentals. INTU boasts a gross profit margin of 80.8% and a net profit margin of 20.5%, alongside a market cap of $220B. Its P/E ratio stands at 56.8, indicating a premium valuation that investors might be willing to pay for growth. In contrast, WDAY’s margins are considerably lower, with a gross profit margin of 75.4% and a net profit margin of 6.3%, reflecting its ongoing struggles in profitability.
Analysts rate both companies with a B, but INTU’s overall stronger financial metrics and bullish stock trend, compared to WDAY’s bearish trend with a -20% price change this year, suggest that INTU may be the more profitable investment.
Recommendation: Investors focused on growth may prefer INTU, while those seeking higher risk may consider WDAY due to its potential upside if operational challenges are resolved. However, be aware of the risks associated with WDAY’s competitive pressure and profitability challenges.
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:
