Analyzing Atlassian (NASDAQ:TEAM) and Sangoma Technologies (NASDAQ:SANG)

Sangoma Technologies (NASDAQ:SANG – Get Free Report) and Atlassian (NASDAQ:TEAM – Get Free Report) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sangoma Technologies $200.07 million 0.81 -$81.09 million ($2.39) -2.03
Atlassian $6.57 billion 7.59 -$53.83 million ($0.19) -1,035.00

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

Institutional and Insider Ownership

39.6% of Sangoma Technologies shares are held by institutional investors. Comparatively, 94.4% of Atlassian shares are held by institutional investors. 36.7% of Atlassian shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Sangoma Technologies has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Atlassian has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Sangoma Technologies -38.99% -3.85% -2.93%
Atlassian -0.82% 20.99% 4.36%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Sangoma Technologies and Atlassian, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sangoma Technologies 2 2 1 0 1.80
Atlassian 1 4 25 0 2.80

Sangoma Technologies currently has a consensus price target of $4.00, indicating a potential downside of 17.36%. Atlassian has a consensus price target of $191.56, indicating a potential downside of 2.59%. Given Atlassian’s stronger consensus rating and higher possible upside, analysts clearly believe Atlassian is more favorable than Sangoma Technologies.

Summary

Atlassian beats Sangoma Technologies on 12 of the 14 factors compared between the two stocks.

About Sangoma Technologies

(Get Free Report)

Sangoma Technologies Corporation develops, manufactures, distributes, and supports voice and data connectivity components for software-based communication applications worldwide. The company offers Switchvox, a voice over internet protocol phone system; Switchvox Cloud, a unified communications solution, as well as provides cloud communication solutions. It offers SIP Trunking, a telephone service for one or multiple locations; PBXact Cloud, a centralized internet based solution; Asterisk and FreePBX, an open source IP PBX software; and FAXStation, a fax-over-IP solution. In addition, the company provides desk phone, DECT phones, and headset related products. Further, it offers VoIP gateways, session border controllers, telephony card, and managed service provider services. Sangoma Technologies Corporation was founded in 1984 and is headquartered in Markham, Canada.

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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