Reviewing ServiceTitan (NASDAQ:TTAN) and Atlassian (NASDAQ:TEAM)

ServiceTitan (NASDAQ:TTANGet Free Report) and Atlassian (NASDAQ:TEAMGet Free Report) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.

Institutional and Insider Ownership

94.4% of Atlassian shares are owned by institutional investors. 39.9% of ServiceTitan shares are owned by company insiders. Comparatively, 36.7% of Atlassian shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for ServiceTitan and Atlassian, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ServiceTitan 1 3 15 0 2.74
Atlassian 1 5 21 1 2.79

ServiceTitan presently has a consensus target price of $107.80, indicating a potential upside of 38.77%. Atlassian has a consensus target price of $145.63, indicating a potential upside of 25.60%. Given ServiceTitan’s higher possible upside, equities research analysts plainly believe ServiceTitan is more favorable than Atlassian.

Risk and Volatility

ServiceTitan has a beta of 0.12, suggesting that its share price is 88% less volatile than the S&P 500. Comparatively, Atlassian has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Profitability

This table compares ServiceTitan and Atlassian’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ServiceTitan -16.64% -6.86% -5.80%
Atlassian -3.50% 6.22% 1.37%

Valuation & Earnings

This table compares ServiceTitan and Atlassian”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ServiceTitan $960.97 million 7.70 -$159.85 million ($1.72) -45.16
Atlassian $6.19 billion 4.75 -$256.69 million ($0.83) -139.70

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

Summary

Atlassian beats ServiceTitan on 10 of the 15 factors compared between the two stocks.

About ServiceTitan

(Get Free Report)

ServiceTitan, Inc. engages in the collection of field service activities required to install, maintain, and service the infrastructure and systems of residences and commercial buildings. The company was founded by Ara Mahdessian and Vahe Kuzoyan on June 8, 2008 and is headquartered in Glendale, CA.

About Atlassian

(Get Free Report)

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.

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