Atlassian (TEAM) vs. Smith Micro Software (SMSI) Critical Comparison

Atlassian (NASDAQ: TEAM) and Smith Micro Software (NASDAQ:SMSI) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Valuation and Earnings

This table compares Atlassian and Smith Micro Software’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atlassian $619.94 million 8.35 -$42.50 million ($0.24) -221.13
Smith Micro Software $28.24 million 1.44 -$14.51 million ($0.73) -3.89

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

Profitability

This table compares Atlassian and Smith Micro Software’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atlassian -7.96% -2.11% -1.48%
Smith Micro Software -39.83% -265.05% -37.51%

Insider & Institutional Ownership

81.0% of Atlassian shares are owned by institutional investors. Comparatively, 14.9% of Smith Micro Software shares are owned by institutional investors. 22.0% of Smith Micro Software shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Atlassian and Smith Micro Software, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlassian 0 4 9 0 2.69
Smith Micro Software 0 0 0 0 N/A

Atlassian presently has a consensus price target of $53.56, suggesting a potential upside of 0.91%. Given Atlassian’s higher probable upside, equities analysts clearly believe Atlassian is more favorable than Smith Micro Software.

Summary

Atlassian beats Smith Micro Software on 9 of the 12 factors compared between the two stocks.

Atlassian Company Profile

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.

Smith Micro Software Company Profile

Smith Micro Software, Inc. is a provider of software solutions. The Company operates through two segments: Wireless and Graphics. The Company offers multi-platform, modular solutions organized into three product families, including NetWise, CommSuite and QuickLink. For mobile network operators, NetWise helps reduce cellular congestion and optimize data traffic across third-generation (3G), fourth-generation (4G) and wireless fidelity (Wi-Fi) networks. Graphics segment includes its consumer-based products, such as Poser, Anime Studio, Manga Studio, MotionArtist and StuffIt. The Graphics segment develops a range of software, including graphic design and animation, compression and personal computer (PC)/Mac utilities, for consumers, professional artists and educators. The Company also offers Family Safety platform for family locator and parental controls.

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