Reviewing Sangoma Technologies (NASDAQ:SANG) & Atlassian (NASDAQ:TEAM)

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Atlassian and Sangoma Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlassian 1 4 25 0 2.80
Sangoma Technologies 1 2 1 0 2.00

Atlassian currently has a consensus target price of $191.56, indicating a potential upside of 7.87%. Sangoma Technologies has a consensus target price of $4.00, indicating a potential downside of 18.28%. Given Atlassian’s stronger consensus rating and higher probable upside, equities analysts clearly believe Atlassian is more favorable than Sangoma Technologies.

Institutional and Insider Ownership

94.5% of Atlassian shares are owned by institutional investors. Comparatively, 39.6% of Sangoma Technologies shares are owned by institutional investors. 36.7% of Atlassian shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Atlassian -0.82% 20.99% 4.36%
Sangoma Technologies -3.04% -2.26% -1.71%

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atlassian $6.57 billion 6.86 -$53.83 million ($0.19) -934.64
Sangoma Technologies $236.69 million 0.69 -$5.01 million ($0.19) -25.76

Sangoma Technologies has lower revenue, but higher earnings than Atlassian. 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.

Risk and Volatility

Atlassian has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Sangoma Technologies has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.

Summary

Atlassian beats Sangoma Technologies on 10 of the 13 factors compared between the two stocks.

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.

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.

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