Comparing Dayforce (NYSE:DAY) and AvidXchange (NASDAQ:AVDX)

Dayforce (NYSE:DAY) and AvidXchange (NASDAQ:AVDX) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, dividends, profitability, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of current recommendations 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 price target of $72.25, indicating a potential upside of 1.83%. AvidXchange has a consensus price target of $10.57, indicating a potential upside of 28.29%. Given AvidXchange’s higher possible upside, analysts plainly believe AvidXchange is more favorable than Dayforce.

Insider and Institutional Ownership

80.6% of AvidXchange shares are held by institutional investors. 4.9% of Dayforce shares are held by company insiders. Comparatively, 10.4% of AvidXchange shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

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%

Risk and Volatility

Dayforce has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, AvidXchange has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Earnings and Valuation

This table compares Dayforce and AvidXchange”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dayforce	$1.63 billion	6.87	$54.80 million	$0.30	236.50
AvidXchange	$413.47 million	4.14	-$47.33 million	($0.06)	-137.33

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.