Financial Comparison: Daily Journal Corp. (S.C.) (NASDAQ:DJCO) & Okta (NASDAQ:OKTA)

Okta (NASDAQ:OKTA) and Daily Journal Corp. (S.C.) (NASDAQ:DJCO) are both technology companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Okta and Daily Journal Corp. (S.C.), as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Okta	0	11	31	1	2.77
Daily Journal Corp. (S.C.)	0	1	0	0	2.00

Okta presently has a consensus target price of $177.61, indicating a potential downside of 9.67%. Given Okta’s stronger consensus rating and higher possible upside, analysts plainly believe Okta is more favorable than Daily Journal Corp. (S.C.).

Earnings and Valuation

This table compares Okta and Daily Journal Corp. (S.C.)”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Okta	$2.92 billion	11.78	$235.00 million	$1.66	118.45
Daily Journal Corp. (S.C.)	$87.70 million	10.34	$112.14 million	($8.22)	-79.93

Okta has higher revenue and earnings than Daily Journal Corp. (S.C.). Daily Journal Corp. (S.C.) is trading at a lower price-to-earnings ratio than Okta, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

86.6% of Okta shares are held by institutional investors. Comparatively, 51.2% of Daily Journal Corp. (S.C.) shares are held by institutional investors. 4.6% of Okta shares are held by insiders. Comparatively, 0.1% of Daily Journal Corp. (S.C.) shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Okta has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Daily Journal Corp. (S.C.) has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.

Profitability

This table compares Okta and Daily Journal Corp. (S.C.)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Okta	9.63%	4.50%	3.34%
Daily Journal Corp. (S.C.)	-11.63%	-3.11%	-2.24%

Summary

Okta beats Daily Journal Corp. (S.C.) on 14 of the 15 factors compared between the two stocks.

About Okta

Okta, Inc. operates as an identity partner in the United States and internationally. The company offers Okta's suite of products and services used to manage and secure identities, such as Single Sign-On that enables users to access applications in the cloud or on-premises from various devices; Adaptive Multi-Factor Authentication provides a layer of security for cloud, mobile, web applications, and data; API Access Management enables organizations to secure APIs; Access Gateway enables organizations to extend Workforce Identity Cloud; and Okta Device Access enables end users to securely log in to devices with Okta credentials. It also provides Universal Directory, a cloud-based system of record to store and secure user, application, and device profiles for an organization; Lifecycle Management enables IT organizations or developers to manage a user's identity throughout its lifecycle; Okta Identity Governance provides identity access management and identity governance solutions; Advanced Server Access offers access management to secure cloud infrastructure; Okta Privileged Access enables organizations to reduce risk with unified access and governance management for on-premises and cloud resources; and Okta Workforce Identity Workflows. In addition, the company offers Universal Login, which allows customers to provide login experience across different applications and devices; and Attack Protection, a suite of security capabilities that protects customers from different types of malicious traffic. Further, it provides Adaptive Multi-Factor Authentication, Passwordless, Machine to Machine, Private Cloud, Organizations, Actions and Extensibility, and Enterprise Connections. The company sells its products directly to customers through sales force and channel partners. The company was formerly known as Saasure, Inc. Okta, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.

About Daily Journal Corp. (S.C.)

Daily Journal Corporation operates in publishing of newspapers and websites covering in California, Arizona, Utah, and Australia. It operates in two segments, Traditional Business and Journal Technologies. The company publishes 10 newspapers of general circulation, including Los Angeles Daily Journal, San Francisco Daily Journal, Daily Commerce, The Daily Recorder, The Inter-City Express, San Jose Post-Record, Orange County Reporter, Business Journal, The Daily Transcript, and The Record Reporter. It also provides specialized information services; and serves as an advertising and newspaper representative for commercial and public notice advertising. In addition, the company offers case management software systems and related products, including eCourt, eProsecutor, eDefender, and eProbation, which are browser-based case processing systems; eFile, a browser-based interface that allows attorneys and the public to electronically file documents with the court; and ePayIt, a service primarily for the online payment of traffic citations. It provides its software systems and related products to courts; prosecutor and public defender offices; probation departments; and other justice agencies, including administrative law organizations, city and county governments, and bar associations to manage cases and information electronically, to interface with other justice partners, and to extend electronic services to bar members and the public in 30 states and internationally. Daily Journal Corporation was incorporated in 1987 and is based in Los Angeles, California.