Analyzing Atlassian (NASDAQ:TEAM) & Black Knight (NASDAQ:BKI)

Black Knight (NYSE:BKI) and Atlassian (NASDAQ:TEAM) are both large-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.

Valuation & Earnings

This table compares Black Knight and Atlassian’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Black Knight $1.18 billion 9.16 $108.80 million $1.72 41.80
Atlassian $1.21 billion 17.64 -$637.62 million ($0.17) -1,030.18

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

Analyst Ratings

This is a summary of recent recommendations for Black Knight and Atlassian, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Black Knight 0 6 5 0 2.45
Atlassian 0 3 16 0 2.84

Black Knight presently has a consensus target price of $73.33, suggesting a potential upside of 1.99%. Atlassian has a consensus target price of $169.63, suggesting a potential downside of 3.14%. Given Black Knight’s higher possible upside, equities analysts clearly believe Black Knight is more favorable than Atlassian.

Volatility and Risk

Black Knight has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Atlassian has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Insider and Institutional Ownership

89.5% of Black Knight shares are held by institutional investors. Comparatively, 93.3% of Atlassian shares are held by institutional investors. 4.4% of Black Knight shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Black Knight 11.16% 13.80% 6.48%
Atlassian -13.37% 0.84% 0.19%

Summary

Black Knight beats Atlassian on 8 of the 14 factors compared between the two stocks.

Black Knight Company Profile

Black Knight, Inc. provides integrated software, data, and analytics solutions to the mortgage and consumer loan, real estate, and capital market verticals in the United States. Its Software Solutions segment offers software and hosting solutions comprises MSP, a software as a service application platform for mortgage and home equity loans that automates various areas of loan servicing; Bankruptcy / Foreclosure solutions for managing and automating a range of different workflow processes involving distressed and non-performing loans; Invoicing, a Web-based solution that helps servicers to save time and eliminate errors by automating billing and invoice process; and Empower, a loan origination system used by lenders to originate mortgages, home equity loans, and lines of credit. This segments also provides LendingSpace, a lending platform that facilitates real-time communication between correspondent loan sellers and purchases; Exchange, a platform that provides an interconnected network of originators, agents, settlement services providers, and mortgage investors; and Expedite, a suite of products and services to automate and streamline internal business processes, as well as to manage compliance and enhance the application-to-close cycle; Servicing Digital solution that delivers information about the value of consumer's home and wealth that can be built from the underlying real estate asset; AIVA, an artificial intelligence virtual assistant; and Rapid Analytics platform, a cloud-based virtual analytics lab. The Data and Analytics segment include property ownership data, lien data, servicing data, automated valuation models, collateral risk scores, prepayment and default models, lead generation, multiple listing service, and other data solutions. The company was formerly known as Black Knight Financial Services, Inc. and changed its name to Black Knight, Inc. in October 2017. Black Knight, Inc. was founded in 2013 and is headquartered in Jacksonville, Florida.

Atlassian Company Profile

Atlassian Corporation Plc, through its subsidiaries, designs, develops, licenses, and maintains various software products worldwide. It provides project tracking, content creation and sharing, and service management products. The company's products include JIRA, a workflow management system that enables teams to plan, organize, track, and manage their work and projects; Confluence, a content collaboration platform that is used to create, share, organize, and discuss projects; and Trello, a Web-based project management application for capturing and adding structure to fluid, fast-forming work for teams. Its products also comprise Bitbucket, a code management and collaboration product for teams using distributed version control systems; and Jira Service Desk, a service desk product for creating and managing service experiences for various service team providers, including IT help desks, and legal and HR teams. In addition, the company offers other tools, such as Atlassian Access, Bamboo, Crowd, Crucible, Fisheye, Sourcetree, and Statuspage. It has a strategic partnership with Zoom Video Communications, Inc. Atlassian Corporation Plc was founded in 2002 and is based in London, the United Kingdom.

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