Atlassian (NASDAQ:TEAM – Get Free Report) and Virnetx (NASDAQ:VHC – Get Free Report) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.
Insider and Institutional Ownership
94.5% of Atlassian shares are owned by institutional investors. Comparatively, 10.4% of Virnetx shares are owned by institutional investors. 36.7% of Atlassian shares are owned by insiders. Comparatively, 15.7% of Virnetx shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Volatility & Risk
Atlassian has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Virnetx has a beta of 2.28, meaning that its share price is 128% more volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Atlassian | $6.57 billion | 7.32 | -$53.83 million | ($0.19) | -997.79 |
| Virnetx | $114,000.00 | 427.78 | -$18.23 million | ($5.37) | -2.17 |
Virnetx has lower revenue, but higher earnings than Atlassian. Atlassian is trading at a lower price-to-earnings ratio than Virnetx, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Atlassian and Virnetx, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Atlassian | 1 | 4 | 25 | 0 | 2.80 |
| Virnetx | 1 | 0 | 0 | 0 | 1.00 |
Atlassian currently has a consensus price target of $183.81, suggesting a potential downside of 3.04%. Given Atlassian’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Atlassian is more favorable than Virnetx.
Profitability
This table compares Atlassian and Virnetx’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Atlassian | -0.82% | 20.99% | 4.36% |
| Virnetx | N/A | -92.46% | -66.74% |
Summary
Atlassian beats Virnetx on 9 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 Virnetx
VirnetX Holding Corporation, through its subsidiary VirnetX, Inc., operates as an Internet security software and technology company primarily in the United States. The company develops software and technology solutions, including secure domain name registry and GABRIEL Connection Technology that are designed to secure communications over the Internet using zero trust network access. It also offers a portfolio of licenses and services, such as VirnetX One, a security-as-a-service platform that protects enterprise applications, services, and infrastructure from cyber-attacks; GABRIEL Connection Technology software development kit to assist with rapid integration of its techniques into existing software implementations; and War Room software that offers safe and secure video conferencing meeting environment where sensitive communications and data is invisible to those not authorized to view it. In addition, the company provides GABRIEL Collaboration Suite that enables seamless and secure cross-platform communications between users’ devices. It serves domain infrastructure and communication service providers, and system integrators; and enterprise customers, developers, and original equipment manufacturers of chips, servers, desktops, smart phones, tablets, laptops, net books, and other devices in the IP-telephony, mobility, fixed-mobile convergence, and unified communications markets. The company was incorporated in 2005 and is headquartered in Zephyr Cove, Nevada.
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