Head-To-Head Contrast: Atlassian (TEAM) vs. The Competition

Atlassian (NASDAQ:TEAM) is one of 954 public companies in the “Software” industry, but how does it compare to its competitors? We will compare Atlassian to similar companies based on the strength of its analyst recommendations, profitability, valuation, risk, earnings, dividends and institutional ownership.

Risk and Volatility

Atlassian has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Atlassian’s competitors have a beta of 1.26, meaning that their average share price is 26% more volatile than the S&P 500.

Earnings and Valuation

This table compares Atlassian and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Atlassian	$6.57 billion	-$53.83 million	-1,009.05
Atlassian Competitors	$1.80 billion	$385.92 million	111.21

Atlassian has higher revenue, but lower earnings than its competitors. Atlassian is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Atlassian and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atlassian	-0.82%	20.99%	4.36%
Atlassian Competitors	-612.31%	21.01%	-8.89%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Atlassian and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlassian	1	4	23	0	2.79
Atlassian Competitors	5714	21418	44674	1492	2.57

Atlassian currently has a consensus target price of $215.08, indicating a potential upside of 12.18%. As a group, “Software” companies have a potential upside of 27.94%. Given Atlassian’s competitors higher possible upside, analysts clearly believe Atlassian has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

94.5% of Atlassian shares are held by institutional investors. Comparatively, 41.8% of shares of all “Software” companies are held by institutional investors. 37.6% of Atlassian shares are held by company insiders. Comparatively, 19.9% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Atlassian beats its competitors on 8 of the 13 factors compared.

Atlassian Company Profile

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.