Financial Review: Atlassian (NASDAQ:TEAM) vs. Workday (NASDAQ:WDAY)

Atlassian (NASDAQ:TEAM) and Workday (NASDAQ:WDAY) are both large-cap technology companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Volatility & Risk

Atlassian has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, Workday has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Earnings and Valuation

This table compares Atlassian and Workday”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlassian	$6.57 billion	7.06	-$53.83 million	($0.19)	-964.68
Workday	$9.55 billion	5.05	$693.00 million	$4.93	40.60

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

Institutional and Insider Ownership

94.5% of Atlassian shares are held by institutional investors. Comparatively, 89.8% of Workday shares are held by institutional investors. 37.6% of Atlassian shares are held by company insiders. Comparatively, 18.6% of Workday shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Atlassian and Workday’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atlassian	-0.82%	20.99%	4.36%
Workday	12.32%	20.95%	9.22%

Analyst Recommendations

This is a summary of current recommendations and price targets for Atlassian and Workday, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlassian	1	4	23	0	2.79
Workday	2	19	22	0	2.47

Atlassian currently has a consensus price target of $217.76, indicating a potential upside of 18.81%. Workday has a consensus price target of $202.10, indicating a potential upside of 0.96%. Given Atlassian’s stronger consensus rating and higher probable upside, research analysts clearly believe Atlassian is more favorable than Workday.

Summary

Atlassian beats Workday on 9 of the 14 factors compared between the two stocks.

About Atlassian

Atlassian Corporation, through its subsidiaries, designs, develops, licenses, and maintains various software products worldwide. Its product portfolio includes Jira Software and Jira Work Management, a project management system that connects technical and business teams so they can better plan, organize, track and manage their work and projects; Confluence, a connected workspace that organizes knowledge across all teams to move work forward; and Trello, a collaboration and organization product that captures and adds structure to fluid and fast-forming work for teams. The company also offers Jira Service Management, an intuitive and flexible service desk product for creating and managing service experiences for various service team providers, such as IT, legal, and HR teams; and Jira Align, an Atlassian's enterprise agility solution designed to help businesses to adapt and respond dynamic business conditions with a focus on value-creation. In addition, it provides Bitbucket, an enterprise-ready Git solution that enables professional dev teams to manage, collaborate, and deploy quality code; Atlassian Access, an enterprise-wide product for enhanced security and centralized administration that works across every Atlassian cloud product; and Jira Product, a prioritization and road mapping tool. Further, the company's portfolio includes Atlas, a teamwork directory; Bamboo, a continuous delivery pipeline; Crowd, a single sign-on; Crucible, a collaborative code review; Fisheye, a search, track, and visualize code change software; and Compass, a developer experience platform. Additionally, it offers Opsgenie, an on-call and alert management software; Sourcetree, a free git client for windows and mac; Statuspage that communicates real-time status to users; Beacon, an intelligent threat detection software; and Atlassian Access that enhance data security and governance for Atlassian Cloud products. The company was founded in 2002 and is headquartered in Sydney, Australia.

About Workday

Workday, Inc. provides enterprise cloud applications in the United States and internationally. Its applications help its customers to plan, execute, analyze, and extend to other applications and environments to manage their business and operations. The company offers a suite of financial management applications to maintain accounting information in the general ledger; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights; enhance financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations. It also provides spend management solutions that help organizations to streamline supplier selection and contracts, manage indirect spend, and build and execute sourcing events, such as requests for proposals; expense management solutions to submit and approve expenses; and a suite of human capital management applications that enables HR teams to hire, onboard, pay, develop, reskill, and provide employee experiences. In addition, the company offers planning applications; and applications for analytics and reporting comprising augmented analytics to surface insights to the line of business in simple-to-understand stories, machine learning to drive efficiency and automation, and benchmarks to compare performance against other companies. Further, it provides supply chain and inventory solutions to healthcare organizations; solutions to manage the end-to-end student and faculty lifecycle; and Workday Extend for customers and their developers to build custom applications. It serves professional and business services, financial services, healthcare, education, government, technology, media, retail, and hospitality industries. The company was formerly known as North Tahoe Power Tools, Inc. and changed its name to Workday, Inc. in July 2005. Workday, Inc. was incorporated in 2005 and is headquartered in Pleasanton, California.