Reviewing AppFolio (NASDAQ:APPF) & Atlassian (NASDAQ:TEAM)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AppFolio	25.69%	26.21%	20.82%
Atlassian	-7.22%	-17.37%	-3.70%

Institutional and Insider Ownership

85.2% of AppFolio shares are held by institutional investors. Comparatively, 94.5% of Atlassian shares are held by institutional investors. 5.2% of AppFolio shares are held by insiders. Comparatively, 38.6% of Atlassian shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AppFolio	$794.20 million	10.00	$204.07 million	$5.55	39.37
Atlassian	$4.36 billion	18.93	-$300.52 million	($1.34)	-235.07

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

Risk & Volatility

AppFolio has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Atlassian has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for AppFolio and Atlassian, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AppFolio	1	2	5	0	2.50
Atlassian	0	8	16	0	2.67

AppFolio presently has a consensus target price of $276.29, suggesting a potential upside of 26.45%. Atlassian has a consensus target price of $319.71, suggesting a potential upside of 1.50%. Given AppFolio’s higher probable upside, equities analysts plainly believe AppFolio is more favorable than Atlassian.

Summary

AppFolio beats Atlassian on 8 of the 14 factors compared between the two stocks.

About AppFolio

AppFolio, Inc., together with its subsidiaries, provides cloud business management solutions for the real estate industry in the United States. The company provides a cloud-based platform that enables users to automate and optimize common workflows; tools that assist with leasing, maintenance, and accounting; and other technology and services offered by third parties. It offers AppFolio Property Manager Core, a platform that provides the basic functionalities required to operate a property management business, as well as serves as a system of record; AppFolio Property Manager Plus, which offers housing management, student housing management, complex accounting, leasing insights, large-scale operations support, role-based permissions, stack integrations, and enhanced customer support services; AppFolio Property Manager Max offers customer relationship management functionality, field customization, customer database functionality, and customer success management services; and AppFolio Investment Manager, a software that provides investment management, asset management, and relationship management solutions. The company also provides value-added services that are designed to enhance, automate, and streamline processes and workflows for property management businesses, such as electronic payment, tenant screening, and insurance services. AppFolio, Inc. was incorporated in 2006 and is headquartered in Santa Barbara, California.

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.