Reviewing Ceridian HCM (NYSE:CDAY) and GitLab (NASDAQ:GTLB)

GitLab (NASDAQ:GTLBGet Rating) and Ceridian HCM (NYSE:CDAYGet Rating) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Insider & Institutional Ownership

21.3% of GitLab shares are held by institutional investors. 3.9% of Ceridian HCM shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GitLab 0 1 10 0 2.91
Ceridian HCM 2 4 7 0 2.38

GitLab currently has a consensus price target of $78.91, indicating a potential upside of 79.30%. Ceridian HCM has a consensus price target of $80.33, indicating a potential upside of 78.56%. Given GitLab’s stronger consensus rating and higher probable upside, research analysts plainly believe GitLab is more favorable than Ceridian HCM.

Profitability

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

Net Margins Return on Equity Return on Assets
GitLab N/A N/A N/A
Ceridian HCM -7.72% -3.11% -0.80%

Earnings and Valuation

This table compares GitLab and Ceridian HCM’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GitLab $252.65 million 25.71 -$155.14 million N/A N/A
Ceridian HCM $1.02 billion 6.71 -$75.40 million ($0.55) -81.80

Ceridian HCM has higher revenue and earnings than GitLab.

Summary

GitLab beats Ceridian HCM on 8 of the 11 factors compared between the two stocks.

GitLab Company Profile (Get Rating)

GitLab Inc., through its subsidiaries, develops software for the software development lifecycle in the United States, Europe, and the Asia Pacific. The company offers GitLab, a DevOps platform, which is a single application that leads to faster cycle time and allows visibility throughout and control over various stages of the DevOps lifecycle. It helps organizations to plan, build, secure, and deploy software to drive business outcomes. The company also provides related training and professional services. The company was formerly known as GitLab B.V. and changed its name to GitLab Inc. in July 2015. The company was founded in 2011 and is headquartered in San Francisco, California.

Ceridian HCM Company Profile (Get Rating)

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 (HR), 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.

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