Atlassian Corporation PLC (NASDAQ: TEAM) is one of 110 public companies in the “Software” industry, but how does it compare to its competitors? We will compare Atlassian Corporation PLC to related companies based on the strength of its risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Insider and Institutional Ownership

74.3% of Atlassian Corporation PLC shares are owned by institutional investors. Comparatively, 55.3% of shares of all “Software” companies are owned by institutional investors. 18.2% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Atlassian Corporation PLC -7.96% -2.11% -1.48%
Atlassian Corporation PLC Competitors -48.93% -31.19% -12.09%

Valuation and Earnings

This table compares Atlassian Corporation PLC and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Atlassian Corporation PLC $619.94 million -$42.50 million -219.03
Atlassian Corporation PLC Competitors $2.43 billion $466.21 million 325.50

Atlassian Corporation PLC’s competitors have higher revenue and earnings than Atlassian Corporation PLC. Atlassian Corporation PLC 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.

Risk & Volatility

Atlassian Corporation PLC has a beta of 2.8, suggesting that its share price is 180% more volatile than the S&P 500. Comparatively, Atlassian Corporation PLC’s competitors have a beta of 1.04, suggesting that their average share price is 4% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Atlassian Corporation PLC and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlassian Corporation PLC 0 4 9 0 2.69
Atlassian Corporation PLC Competitors 271 1934 4022 79 2.62

Atlassian Corporation PLC currently has a consensus target price of $48.44, suggesting a potential downside of 7.85%. As a group, “Software” companies have a potential upside of 6.34%. Given Atlassian Corporation PLC’s competitors higher probable upside, analysts clearly believe Atlassian Corporation PLC has less favorable growth aspects than its competitors.

Summary

Atlassian Corporation PLC beats its competitors on 7 of the 12 factors compared.

Atlassian Corporation PLC Company Profile

Atlassian Corporation Plc is a holding company. The Company offers a range of team collaboration products. The Company offers products, including JIRA, Confluence, HipChat, Bitbucket and JIRA Service Desk, for software developers, information technology (IT) managers and knowledge workers. The Company offers JIRA for team planning and project management; Confluence for team content creation and sharing; HipChat for team real-time messaging and communications; Bitbucket for team code sharing and management, and JIRA Service Desk for team service and support applications. JIRA allows teams to organize their work into projects and customize dashboards for those projects to keep their teams aligned and on track. Confluence provides a system for organizing, sharing and securing content in spaces arranged by team, project, department and others. The Company also offers additional tools for software developers, such as FishEye, Clover, Crowd, Crucible, Bamboo and SourceTree.

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