Take a look at the cloud sector, and you will find there are plenty of stocks to choose from. This crowded space will have even more entrants as the cloud becomes increasingly ubiquitous in the years ahead.

You have the opportunity to capitalize on the rapid expansion of the cloud. Carefully sort through the cloud stocks to pinpoint the best values that can help your portfolio grow.

Workday (WDAY) and Zendesk (ZEN) are two of the top names in the cloud space. However, one of these stocks is more deserving of your investing dollars than the other. Let's take a look at each of these cloud stocks to help you choose the right one for your portfolio.

Workday (WDAY)

WDAY provides cloud applications for businesses. In particular, WDAY's cloud applications are primarily used in finance and human resources. The company's applications include time tracking, financial management, employee expense management, procurement, and more. WDAY's customers span a plethora of industries ranging from life sciences to finance.

WDAY has an overall grade of B, which translates into a Buy rating in our POWR Ratings system. The stock has a Growth Grade of A and a Sentiment Grade of B. Investors who are curious as to how WDAY fares in the remainder of the components, including Value, Momentum, Stability, and Quality, can do so by clicking here.

Of the 145 stocks in the Software - Application industry, WDAY is ranked 26th. You can find other top stocks in this industry by clicking here. Analysts believe WDAY will move higher, setting an average target price of $282.29 for the stock. If WDAY reaches this target price, it will have popped by more than 19%. The analysts' average price target for the stock has increased $26.45 across the prior 27 weeks.

Zendesk (ZEN)

ZEN, a software development business, provides SaaS, meaning software-as-a-service. ZEN's customer service platform and applications make it easier for companies and other organizations to manage requests for support.

ZEN has an egregiously high forward P/E ratio of 185.14. This ratio indicates ZEN is overpriced at $118.93. ZEN also has a 1.20 beta, indicating the stock is 20% more volatile than the market. ZEN is a POWR Ratings disappointment with ab overall grade of C, which is a Neutral rating in the POWR Ratings system. 

The stock has a Sentiment Grade of A and Cs in the Momentum, Quality and Stability components. You can find out how ZEN fares in the Growth and Value components by clicking here. ZEN is ranked 84th in the Software - Application industry.  

Which is the Better Buy?

WDAY is the better play as the stock is rated a Buy in the POWR Ratings system, while ZEN is rated Neutral. Plus, WDAY has better component grades and is ranked higher in its industry. The addition of WDAY is your better bet to provide your portfolio exposure to the cloud segment.

WDAY shares fell $0.10 (-0.04%) in premarket trading Wednesday. Year-to-date, WDAY has declined -3.48%, versus a 19.31% rise in the benchmark S&P 500 index during the same period.

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.

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