Workday (NASDAQ:WDAY – Get Free Report) and Atlassian (NASDAQ:TEAM – Get Free Report) are both large-cap technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, dividends, risk, institutional ownership and valuation.
Insider and Institutional Ownership
89.8% of Workday shares are owned by institutional investors. Comparatively, 94.5% of Atlassian shares are owned by institutional investors. 18.6% of Workday shares are owned by insiders. Comparatively, 37.6% of Atlassian shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Workday and Atlassian”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Workday | $10.15 billion | 4.61 | $693.00 million | $4.93 | 39.44 |
| Atlassian | $6.57 billion | 5.82 | -$53.83 million | $0.36 | 420.07 |
Workday has higher revenue and earnings than Atlassian. Workday is trading at a lower price-to-earnings ratio than Atlassian, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Workday and Atlassian’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Workday | 12.32% | 20.95% | 9.22% |
| Atlassian | 1.28% | 33.53% | 6.35% |
Analyst Recommendations
This is a breakdown of recent recommendations for Workday and Atlassian, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Workday | 2 | 19 | 22 | 0 | 2.47 |
| Atlassian | 1 | 3 | 24 | 0 | 2.82 |
Workday presently has a consensus price target of $202.10, indicating a potential upside of 3.95%. Atlassian has a consensus price target of $209.48, indicating a potential upside of 38.52%. Given Atlassian’s stronger consensus rating and higher probable upside, analysts clearly believe Atlassian is more favorable than Workday.
Risk and Volatility
Workday has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, Atlassian has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.
Summary
Atlassian beats Workday on 9 of the 14 factors compared between the two stocks.
About Workday
Workday, Inc. develops cloud-based software for managing human resources, finance and business operations. Its products include Workday Human Capital Management, Workday Financial Management and Workday Adaptive Planning, which help organizations manage areas such as workforce administration, accounting, budgeting and forecasting. Founded in 2005 by Dave Duffield and Aneel Bhusri, Workday serves businesses, governments and educational institutions across a range of industries. Its operations and customer base extend across North America and international markets.
About Atlassian
Atlassian Corporation develops collaboration and productivity software for software, IT and business teams. Its products help organizations plan and track work, manage software development and support services, and share information across teams. Its product portfolio includes Jira for project and issue tracking, Confluence for team documentation and collaboration, Jira Service Management for IT and other service teams, Trello for visual work management, and Bitbucket for code collaboration. Atlassian also offers cloud-based products and tools for distributed teams.
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