Critical Survey: Cheer (NASDAQ:CHR) versus Workday (NASDAQ:WDAY)

Cheer (NASDAQ:CHR) and Workday (NASDAQ:WDAY) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Insider and Institutional Ownership

18.5% of Cheer shares are owned by institutional investors. Comparatively, 89.8% of Workday shares are owned by institutional investors. 41.7% of Cheer shares are owned by insiders. Comparatively, 20.0% of Workday shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Cheer has a beta of -0.33, suggesting that its share price is 133% less volatile than the S&P 500. Comparatively, Workday has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Cheer and Workday, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheer	0	0	0	0	N/A
Workday	1	6	20	0	2.70

Workday has a consensus price target of $287.04, indicating a potential upside of 21.20%. Given Workday’s higher probable upside, analysts plainly believe Workday is more favorable than Cheer.

Profitability

This table compares Cheer and Workday’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cheer	N/A	N/A	N/A
Workday	19.59%	5.34%	2.66%

Earnings and Valuation

This table compares Cheer and Workday”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheer	$152.33 million	0.20	$30.48 million	N/A	N/A
Workday	$7.86 billion	7.98	$1.38 billion	$5.55	42.67

Workday has higher revenue and earnings than Cheer.

Summary

Workday beats Cheer on 10 of the 11 factors compared between the two stocks.

About Cheer

Cheer Holding, Inc., through its subsidiaries, provides advertisement and content production services in the People’s Republic of China. It operates through Cheers APP Internet Business and Traditional Media Businesses segments. The company also engages in mobile and online advertising, and media and entertainment businesses. In addition, it operates CHEERS app, an integrated e-commerce service with professionally produced content; CHEERS Video app, a media platform that engages users with content; and CHEERS e-Mall, an e-Mall app that offers products to the users through third party merchants through live streaming, online short videos, and online games. The company also provides CHEERS Telepathy, an artificial intelligence content creation platform; CHEERS Open Data, a platform that provides industry solutions; CheerCar, an interactive entertainment app; CheerReal, a digital collection NFT app; and production, such as short videos, online variety shows, online drama, live stream, and Cheers series. In addition, it is developing CheerChat App, a social app; and CHEERS Metaverse, a platform to provide immersive digital experiences. The company was formerly known as Glory Star New Media Group Holdings Limited and changed its name to Cheer Holding, Inc. in November 2023. Cheer Holding, Inc. was founded in 2016 and is headquartered in Beijing, the People’s Republic of China.

About Workday

Workday, Inc. provides enterprise cloud applications in the United States and internationally. Its applications help its customers to plan, execute, analyze, and extend to other applications and environments to manage their business and operations. The company offers a suite of financial management applications to maintain accounting information in the general ledger; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights; enhance financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations. It also provides spend management solutions that help organizations to streamline supplier selection and contracts, manage indirect spend, and build and execute sourcing events, such as requests for proposals; expense management solutions to submit and approve expenses; and a suite of human capital management applications that enables HR teams to hire, onboard, pay, develop, reskill, and provide employee experiences. In addition, the company offers planning applications; and applications for analytics and reporting comprising augmented analytics to surface insights to the line of business in simple-to-understand stories, machine learning to drive efficiency and automation, and benchmarks to compare performance against other companies. Further, it provides supply chain and inventory solutions to healthcare organizations; solutions to manage the end-to-end student and faculty lifecycle; and Workday Extend for customers and their developers to build custom applications. It serves professional and business services, financial services, healthcare, education, government, technology, media, retail, and hospitality industries. The company was formerly known as North Tahoe Power Tools, Inc. and changed its name to Workday, Inc. in July 2005. Workday, Inc. was incorporated in 2005 and is headquartered in Pleasanton, California.