Head-To-Head Contrast: Braze (NASDAQ:BRZE) vs. Ceridian HCM (NYSE:CDAY)

Ceridian HCM (NYSE:CDAY) and Braze (NASDAQ:BRZE) are both mid-cap 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

90.5% of Braze shares are owned by institutional investors. 4.5% of Ceridian HCM shares are owned by insiders. Comparatively, 24.0% of Braze 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

Ceridian HCM has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Braze has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Ceridian HCM and Braze, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ceridian HCM	0	3	4	0	2.57
Braze	0	0	17	0	3.00

Ceridian HCM currently has a consensus price target of $77.00, indicating a potential upside of 30.07%. Braze has a consensus price target of $60.50, indicating a potential upside of 74.73%. Given Braze’s stronger consensus rating and higher probable upside, analysts plainly believe Braze is more favorable than Ceridian HCM.

Profitability

This table compares Ceridian HCM and Braze’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ceridian HCM	0.28%	2.03%	0.51%
Braze	-22.01%	-25.89%	-14.25%

Earnings and Valuation

This table compares Ceridian HCM and Braze”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ceridian HCM	$1.45 billion	6.37	-$73.40 million	$0.03	1,973.33
Braze	$535.87 million	6.57	-$129.17 million	($1.28)	-27.05

Ceridian HCM has higher revenue and earnings than Braze. Braze is trading at a lower price-to-earnings ratio than Ceridian HCM, indicating that it is currently the more affordable of the two stocks.

Summary

Ceridian HCM beats Braze on 8 of the 14 factors compared between the two stocks.

About Ceridian HCM

Ceridian HCM Holding Inc., together with its subsidiaries, operates as a human capital management (HCM) software company in the United States, Canada, and internationally. It offers Dayforce, a cloud HCM platform that provides human resources, payroll, benefits, workforce management, and talent management functionality; and Powerpay, a cloud HR and payroll solution for the small business market. The company also provides Bureau solutions for payroll and payroll-related services. It sells its solutions through direct sales force and third-party channels. The company was incorporated in 2013 and is headquartered in Minneapolis, Minnesota.

About Braze

Braze, Inc. operates a customer engagement platform that provides interactions between consumers and brands worldwide. The company offers Braze software development kits that automatically manage data ingestion and deliver mobile and web notifications, in-application/in-browser interstitial messages, and content cards; REST API that can be used to import or export data or to trigger workflows between Braze and brands' existing technology stacks; Partner Data Integrations, which allow brands to sync user cohorts from partners; Data Transformation, in which brands can programmatically sync and transform user data; and Braze Cloud Data Ingestion that enables brands to harness their customer data. It also offers classification products, including segmentation that can define reusable segments of consumers based upon attributes, events, or predictive propensity scores; segment insights, which allows customers to analyze how segments are performing relative to each other across a set of pre-selected key performance indicators; and predictive suite that allows customers to identify groups of consumers that are of critical business value. In addition, the company provides Canvas, an orchestration tool that allows customers to create journeys, mapping out multi-steps, and cross-channel messaging experiences; campaigns, which allows customers to send one set of single-channel or multi-channel messages to be delivered to customers in a particular user segment; event and API triggering; marketing pressure management; and reporting and analytics. Further, it offers personalization products, such as liquid templating platform, connected content platform, content blocks, intelligent timing and channel, personalized variant, and AI item recommendations, and catalogs; and action products. The company was formerly known as Appboy, Inc. and changed its name to Braze, Inc. in November 2017. Braze, Inc. was incorporated in 2011 and is headquartered in New York, New York.