Exa Corporation (NASDAQ: EXA) and Atlassian Corporation PLC (NASDAQ:TEAM) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.
Volatility and Risk
Exa Corporation has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500. Comparatively, Atlassian Corporation PLC has a beta of 2.52, indicating that its stock price is 152% more volatile than the S&P 500.
Profitability
This table compares Exa Corporation and Atlassian Corporation PLC’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Exa Corporation | -3.79% | -13.97% | -4.03% |
| Atlassian Corporation PLC | -6.86% | -1.91% | -1.36% |
Earnings & Valuation
This table compares Exa Corporation 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 | |
| Exa Corporation | $72.35 million | 2.77 | $3.22 million | ($0.19) | -70.79 |
| Atlassian Corporation PLC | $619.94 million | 13.24 | -$16.13 million | ($0.19) | -191.25 |
Exa Corporation has higher revenue, but lower earnings than Atlassian Corporation PLC. Atlassian Corporation PLC is trading at a lower price-to-earnings ratio than Exa Corporation, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Exa Corporation and Atlassian Corporation PLC, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Exa Corporation | 0 | 1 | 3 | 0 | 2.75 |
| Atlassian Corporation PLC | 0 | 4 | 8 | 0 | 2.67 |
Exa Corporation currently has a consensus price target of $16.50, suggesting a potential upside of 22.68%. Atlassian Corporation PLC has a consensus price target of $39.13, suggesting a potential upside of 7.66%. Given Exa Corporation’s stronger consensus rating and higher possible upside, research analysts plainly believe Exa Corporation is more favorable than Atlassian Corporation PLC.
Insider & Institutional Ownership
76.4% of Exa Corporation shares are owned by institutional investors. Comparatively, 81.5% of Atlassian Corporation PLC shares are owned by institutional investors. 11.5% of Exa Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Atlassian Corporation PLC beats Exa Corporation on 7 of the 13 factors compared between the two stocks.
About Exa Corporation
Exa Corporation develops, sells and supports simulation software and services that manufacturers use in design and engineering processes. The Company focuses primarily on the ground transportation market, including manufacturers in the passenger vehicle, highway truck, off-highway vehicle and train markets, as well as their suppliers. Its product, PowerFLOW, is a software solution for simulating fluid flow problems, including aerodynamics, thermal management and aeroacoustics, or wind noise. PowerFLOW uses its Digital Physics technology that enables it to predict fluid flows. PowerFLOW directly simulates unpredictable turbulent scales. The PowerFLOW software suite includes the simulation engine and grid generation engine, along with pre- and post-processing software products. The software is delivered in client/server architecture, or through its cloud-based offering, ExaCLOUD. With the ExaCLOUD solution, various client features and functions are accessed through a Web browser.
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.
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