Critical Analysis: Workiva (NYSE:WK) and Pony AI (NASDAQ:PONY)

Workiva (NYSE:WK) and Pony AI (NASDAQ:PONY) are both mid-cap technology companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Workiva and Pony AI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Workiva	1	0	9	1	2.91
Pony AI	1	2	7	0	2.60

Workiva presently has a consensus target price of $88.30, indicating a potential upside of 35.27%. Pony AI has a consensus target price of $19.57, indicating a potential upside of 199.31%. Given Pony AI’s higher possible upside, analysts plainly believe Pony AI is more favorable than Workiva.

Valuation and Earnings

This table compares Workiva and Pony AI”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Workiva	$884.57 million	4.14	-$26.17 million	$0.82	79.61
Pony AI	$90.00 million	31.57	-$133.97 million	($0.36)	-18.17

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

Institutional and Insider Ownership

92.2% of Workiva shares are held by institutional investors. 4.8% of Workiva shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Workiva has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, Pony AI has a beta of 3.87, suggesting that its share price is 287% more volatile than the S&P 500.

Profitability

This table compares Workiva and Pony AI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Workiva	4.87%	-140.17%	3.74%
Pony AI	-118.47%	-14.86%	-13.97%

Summary

Workiva beats Pony AI on 11 of the 15 factors compared between the two stocks.

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.

About Pony AI

Pony AI Inc., through its subsidiaries, engages in the autonomous mobility principally in the People’s Republic of China and the United States. The company provides robotruck services, such as transportation services to the logistics platforms. Pony AI Inc. is based in Guangzhou, the People’s Republic of China.