Dayforce (NYSE:DAY – Get Free Report) and AvidXchange (NASDAQ:AVDX – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.
Volatility & Risk
Dayforce has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, AvidXchange has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.
Profitability
This table compares Dayforce and AvidXchange’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Dayforce | 2.89% | 6.35% | 1.61% |
AvidXchange | -3.18% | -0.23% | -0.07% |
Institutional & Insider Ownership
Analyst Recommendations
This is a summary of current ratings and recommmendations for Dayforce and AvidXchange, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Dayforce | 0 | 5 | 7 | 1 | 2.69 |
AvidXchange | 2 | 7 | 5 | 0 | 2.21 |
Dayforce presently has a consensus target price of $69.75, suggesting a potential upside of 7.57%. AvidXchange has a consensus target price of $10.57, suggesting a potential upside of 31.00%. Given AvidXchange’s higher probable upside, analysts clearly believe AvidXchange is more favorable than Dayforce.
Valuation & Earnings
This table compares Dayforce and AvidXchange”s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Dayforce | $1.63 billion | 6.27 | $54.80 million | $0.33 | 196.48 |
AvidXchange | $413.47 million | 4.03 | -$47.33 million | ($0.15) | -53.80 |
Dayforce has higher revenue and earnings than AvidXchange. AvidXchange is trading at a lower price-to-earnings ratio than Dayforce, indicating that it is currently the more affordable of the two stocks.
Summary
Dayforce beats AvidXchange on 12 of the 15 factors compared between the two stocks.
About Dayforce
Dayforce 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 and tax, workforce management, wallet, benefits, and talent intelligence functionalities; and Powerpay, a cloud HR and payroll solution for the small business market. The company also provides payroll and payroll-related services; and implementation and professional services. It sells its solutions through direct sales force and third-party channels. The company was formerly known as Ceridian HCM Holding Inc. and changed its name to Dayforce Inc. in February 2024. Dayforce Inc. was founded in 1992 and is headquartered in Minneapolis, Minnesota.
About AvidXchange
AvidXchange Holdings, Inc. provides accounts payable (AP) automation software and payment solutions for middle market businesses and their suppliers in North America. The company offers AP automation software, a SaaS-based solution that automates and digitizes capture, review, approval, and payment of invoices for buyers; the AvidPay network that connects two-sided payments with buyers and suppliers; and the AvidXchange Supplier Hub, which provides supplier insights to cash flow, tools for in-network invoices and payments, and early payment feature. Its platform offers electronic invoice capture, workflow routing, and automated payments solutions. The company serves real estate, community association management, construction, financial services, healthcare facilities, social services, education, hospitality, and media sectors through direct salesforces; strategic channel partnerships; and software and technology business partners. AvidXchange Holdings, Inc. was incorporated in 2000 and is headquartered in Charlotte, North Carolina.
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