Workiva (NYSE:WK) versus Red Cat (NASDAQ:RCAT) Financial Survey
by Michael Walen · The Markets DailyRed Cat (NASDAQ:RCAT – Get Free Report) and Workiva (NYSE:WK – Get Free Report) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.
Risk and Volatility
Red Cat has a beta of -0.03, indicating that its share price is 103% less volatile than the S&P 500. Comparatively, Workiva has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.
Institutional & Insider Ownership
38.0% of Red Cat shares are owned by institutional investors. Comparatively, 92.2% of Workiva shares are owned by institutional investors. 30.5% of Red Cat shares are owned by company insiders. Comparatively, 3.9% of Workiva shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current recommendations for Red Cat and Workiva, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Red Cat | 0 | 0 | 1 | 0 | 3.00 |
| Workiva | 0 | 1 | 5 | 0 | 2.83 |
Red Cat currently has a consensus target price of $4.00, suggesting a potential upside of 48.70%. Workiva has a consensus target price of $95.00, suggesting a potential upside of 20.59%. Given Red Cat’s stronger consensus rating and higher possible upside, research analysts plainly believe Red Cat is more favorable than Workiva.
Earnings & Valuation
This table compares Red Cat and Workiva”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Red Cat | $18.86 million | 10.59 | -$24.05 million | ($0.52) | -5.17 |
| Workiva | $678.00 million | 6.37 | -$127.53 million | ($1.72) | -45.80 |
Red Cat has higher earnings, but lower revenue than Workiva. Workiva is trading at a lower price-to-earnings ratio than Red Cat, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Red Cat and Workiva’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Red Cat | -162.50% | -66.19% | -58.99% |
| Workiva | -13.23% | N/A | -6.99% |
About Red Cat
Red Cat Holdings, Inc. engages in the provision of various products, services, and solutions to the drone industry. The company operates through two segments: Enterprise and Consumer. It built infrastructure to manages drone fleets and fly, and provide services remotely, navigate confined industrial interior spaces and dangerous military environment. Red Cat Holdings, Inc. is based in San Juan, Puerto Rico.
About Workiva
Workiva Inc., together with its subsidiaries, provides cloud-based reporting solutions in the United States and internationally. The company offers Workiva platform, a multi-tenant cloud software that provides data linking capabilities; audit trail services; administrators access management; and allows customers to connect data from multiple enterprise resource planning, human capital management, and customer relationship management systems, as well as other third-party cloud and on-premise applications. It serves public and private companies, government agencies, and higher-education institutions. Workiva Inc. was founded in 2008 and is headquartered in Ames, Iowa.