Atlassian (NASDAQ:TEAM) vs. Locafy (NASDAQ:LCFY) Critical Survey

Atlassian (NASDAQ:TEAM) and Locafy (NASDAQ:LCFY) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Risk & Volatility

Atlassian has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Locafy has a beta of 1.95, meaning that its stock price is 95% more volatile than the S&P 500.

Earnings and Valuation

This table compares Atlassian and Locafy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlassian	$5.76 billion	3.44	-$256.69 million	($0.72)	-104.35
Locafy	$2.07 million	4.12	-$2.79 million	($1.04)	-4.56

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Atlassian	-3.29%	-6.33%	-1.51%
Locafy	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings for Atlassian and Locafy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlassian	2	5	20	0	2.67
Locafy	1	0	0	0	1.00

Atlassian presently has a consensus target price of $189.32, indicating a potential upside of 151.99%. Given Atlassian’s stronger consensus rating and higher probable upside, equities analysts clearly believe Atlassian is more favorable than Locafy.

Institutional & Insider Ownership

94.4% of Atlassian shares are held by institutional investors. Comparatively, 0.0% of Locafy shares are held by institutional investors. 36.7% of Atlassian shares are held by insiders. Comparatively, 28.7% of Locafy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

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 Locafy

Locafy Limited operates as a software-as-a-service company (SaaS) that specializes in search engine marketing in Australia, New Zealand, Europe, North America, and internationally. The company operates in three segments: Publishing, Direct Sales, and Reseller Sales. It focuses on commercializing its SaaS online publishing technology platform that comprises an integrated suite of solutions. The company also owns and operates several online directories and offers search engine optimization solutions, which include creation of proximity pages and proximity networks, local pages, and map pack booster. In addition, its platform publishes content to various devices that uses a web browser to display web content, as well as programmatically optimizes the published content for local search. The company offers its solutions directly to customers, as well as through digital agencies and search engine optimization freelancers. The company was formerly known as Moboom Limited and changed its name to Locafy Limited in January 2021. Locafy Limited was incorporated in 2009 and is based in Subiaco, Australia.