Critical Analysis: Digital Turbine (APPS) & Atlassian Corporation PLC (TEAM)
Digital Turbine (NASDAQ: APPS) and Atlassian Corporation PLC (NASDAQ:TEAM) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.
Risk and Volatility
Digital Turbine has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Atlassian Corporation PLC has a beta of 2.48, suggesting that its stock price is 148% more volatile than the S&P 500.
Insider and Institutional Ownership
16.1% of Digital Turbine shares are held by institutional investors. Comparatively, 77.8% of Atlassian Corporation PLC shares are held by institutional investors. 4.8% of Digital Turbine shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares Digital Turbine and Atlassian Corporation PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Atlassian Corporation PLC||-7.96%||-2.11%||-1.48%|
This is a breakdown of current ratings and recommmendations for Digital Turbine and Atlassian Corporation PLC, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Atlassian Corporation PLC||0||4||9||0||2.69|
Digital Turbine presently has a consensus target price of $1.48, suggesting a potential downside of 6.05%. Atlassian Corporation PLC has a consensus target price of $48.44, suggesting a potential upside of 0.15%. Given Atlassian Corporation PLC’s higher probable upside, analysts plainly believe Atlassian Corporation PLC is more favorable than Digital Turbine.
Earnings and Valuation
This table compares Digital Turbine and Atlassian Corporation PLC’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Digital Turbine||$93.63 million||1.12||-$9.37 million||($0.31)||-5.06|
|Atlassian Corporation PLC||$619.94 million||17.73||-$16.13 million||($0.24)||-201.53|
Digital Turbine has higher revenue, but lower earnings than Atlassian Corporation PLC. Atlassian Corporation PLC is trading at a lower price-to-earnings ratio than Digital Turbine, indicating that it is currently the more affordable of the two stocks.
Atlassian Corporation PLC beats Digital Turbine on 10 of the 13 factors compared between the two stocks.
About Digital Turbine
Digital Turbine, Inc. is engaged in delivering end-to-end products and solutions for mobile operators, application advertisers, device original equipment manufacturers (OEMs) and other third parties to enable them to monetize mobile content. The Company operates its business in two operating segments: Advertising and Content. The Advertising segment consists of two businesses: Operator and OEM (O&O) and Advertiser and Publisher (A&P). The O&O business is an advertiser solution for carrier and OEM inventory consisting of services, such as Ignite, a mobile device management platform and Discover, an intelligent application discovery platform. Its A&P business is a mobile user acquisition network across the world consisting of services, such as syndicated network and real time bidding (RTB). The Content segment consists of services, including Marketplace, which is an application and content store, and Pay, which is a content management and mobile payment solution.
About Atlassian Corporation PLC
Atlassian Corporation Plc is a holding company. The Company offers a range of team collaboration products. The Company offers products, including JIRA, Confluence, HipChat, Bitbucket and JIRA Service Desk, for software developers, information technology (IT) managers and knowledge workers. The Company offers JIRA for team planning and project management; Confluence for team content creation and sharing; HipChat for team real-time messaging and communications; Bitbucket for team code sharing and management, and JIRA Service Desk for team service and support applications. JIRA allows teams to organize their work into projects and customize dashboards for those projects to keep their teams aligned and on track. Confluence provides a system for organizing, sharing and securing content in spaces arranged by team, project, department and others. The Company also offers additional tools for software developers, such as FishEye, Clover, Crowd, Crucible, Bamboo and SourceTree.
Receive News & Ratings for Digital Turbine Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Digital Turbine Inc. and related companies with MarketBeat.com's FREE daily email newsletter.