Atlassian (NASDAQ:TEAM – Get Free Report) and i3 Verticals (NASDAQ:IIIV – Get Free Report) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.
Profitability
This table compares Atlassian and i3 Verticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Atlassian | -0.82% | 20.99% | 4.36% |
| i3 Verticals | 4.24% | 4.49% | 3.31% |
Earnings & Valuation
This table compares Atlassian and i3 Verticals”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Atlassian | $6.57 billion | 7.86 | -$53.83 million | ($0.19) | -1,074.21 |
| i3 Verticals | $213.16 million | 2.14 | $17.87 million | $0.38 | 45.55 |
i3 Verticals has lower revenue, but higher earnings than Atlassian. Atlassian is trading at a lower price-to-earnings ratio than i3 Verticals, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Atlassian has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, i3 Verticals has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations for Atlassian and i3 Verticals, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Atlassian | 1 | 4 | 24 | 0 | 2.79 |
| i3 Verticals | 1 | 3 | 3 | 0 | 2.29 |
Atlassian presently has a consensus price target of $214.88, indicating a potential upside of 5.28%. i3 Verticals has a consensus price target of $25.40, indicating a potential upside of 46.74%. Given i3 Verticals’ higher possible upside, analysts clearly believe i3 Verticals is more favorable than Atlassian.
Insider & Institutional Ownership
94.5% of Atlassian shares are held by institutional investors. Comparatively, 84.2% of i3 Verticals shares are held by institutional investors. 37.6% of Atlassian shares are held by insiders. Comparatively, 60.1% of i3 Verticals shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Atlassian beats i3 Verticals on 8 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 i3 Verticals
i3 Verticals, Inc. provides integrated payment and software solutions primarily to the public sector and healthcare markets in the United States. It operates in two segments, Software and Services, and Merchant Services. The company offers payment processing services that enables upper and lower court case management, collections, finance and accounting, motor vehicle and carrier registration, e-filing and taxation, license plate inventory, property tax management, utility billing, professional licensing, document workflow, and law enforcement software; assists public schools in completing payment processing functions, including accepting payments for online or at school lunches, and school activities. It also provides software platforms, such as electronic healthcare records and revenue cycle management solutions; insurance adjudication, patient engagement platforms, billing, scheduling, and integrated payments solutions; and workflow software and associated professional services to medical insurance payers. In addition, the company engages in software licenses and subscriptions, transaction-based fees, ongoing software maintenance and support, and other software-related solutions; and payment processing and gateway fees, as well as other related fixed transaction or service fees. Further, it sells equipment, and offers non-software related professional services. The company offers its solutions to clients through direct sales force; distribution partners comprising independent software vendors, independent sales organizations, and value-added resellers. i3 Verticals, Inc. was founded in 2012 and is headquartered in Nashville, Tennessee.
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