The rising demand for secure and efficient cloud platforms should benefit Workday (NASDAQ:WDAY) and Alight (ALIT). But which of these stocks is a better buy now? Let’s find out.Workday, Inc. (WDAY) and Alight, Inc. (ALIT) are two prominent players in the cloud-based software industry. Pleasanton, Calif.-based WDAY develops enterprise cloud applications that help customers manage critical business functions and optimize their financial and human resources for the finance, healthcare, manufacturing, education, and technology industries worldwide. ALIT, in Lincolnshire, Ill., operates as a cloud-based provider of integrated digital human capital and business solutions worldwide. It offers benefits and payroll solutions, cloud deployment solutions, and cloud application services that comprise cloud advisory, deployment, and application management services for cloud human capital management and financial platforms.
The ongoing digital transformation in almost all industries and the rising adoption of advanced cloud-based software platforms to facilitate remote working should drive the software industry’s growth. The global software market is expected to grow at a 7.2% CAGR between 2021 - 2026. So, both WDAY and ALIT should benefit.
But, while ALIT has gained 13% in price over the past nine months, WDAY has surged 22.5%. WDAY is a clear winner with 14% price gains versus ALIT’s 12.1% returns in terms of their past month’s performance. But which of these stocks is a better pick now? Let’s find out.