LogMeIn (NASDAQ: LOGM) and Atlassian (NASDAQ:TEAM) are both mid-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.
Institutional and Insider Ownership
99.2% of LogMeIn shares are held by institutional investors. Comparatively, 88.8% of Atlassian shares are held by institutional investors. 2.5% of LogMeIn shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Risk and Volatility
LogMeIn has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Atlassian has a beta of 2.28, indicating that its share price is 128% more volatile than the S&P 500.
LogMeIn pays an annual dividend of $1.20 per share and has a dividend yield of 1.1%. Atlassian does not pay a dividend. LogMeIn pays out 35.8% of its earnings in the form of a dividend.
This table compares LogMeIn and Atlassian’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations and price targets for LogMeIn and Atlassian, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
LogMeIn presently has a consensus target price of $144.00, suggesting a potential upside of 29.15%. Atlassian has a consensus target price of $60.78, suggesting a potential downside of 2.86%. Given LogMeIn’s stronger consensus rating and higher possible upside, analysts plainly believe LogMeIn is more favorable than Atlassian.
Earnings and Valuation
This table compares LogMeIn and Atlassian’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|LogMeIn||$989.79 million||5.88||$99.52 million||$3.35||33.28|
|Atlassian||$619.94 million||10.08||-$42.50 million||($0.03)||-2,090.33|
LogMeIn has higher revenue and earnings than Atlassian. Atlassian is trading at a lower price-to-earnings ratio than LogMeIn, indicating that it is currently the more affordable of the two stocks.
LogMeIn beats Atlassian on 13 of the 16 factors compared between the two stocks.
LogMeIn, Inc., together with its subsidiaries, provides a portfolio of cloud-based communication and collaboration, identity and access, and customer engagement and support solutions for individuals and businesses in the United States, the United Kingdom, and internationally. The company offers GoToMeeting, a secure product for online meetings, sales demonstrations, and collaborative gatherings; GoToTraining, a secure online training product for interactive training sessions; GoToConference, a video and audio conferencing solution; GoToWebinar, a do-it-yourself Webinar product for organizations; join.me, join.me pro, and join.me business, which are online meeting and screen sharing services; OpenVoice, a reservation-less audio conferencing service; and Grasshopper, a provider of telephony solutions. It also provides Bold360 and BoldChat that are live chat and omni-channel engagement services; Bold360 ai, an automated customer service; GoToAssist, GoToAssist Corporate, and GoToAssist Seeit, which offer cloud-based remote support solutions to remotely troubleshoot and fix computers, mobile devices, and apps; LogMeIn Rescue, a remote support and customer care service, which provides remote support through the Internet; LogMeIn Rescue+Mobile and Rescue Lens that are Web-based remote support services. In addition, the company offers LogMeIn Central, a Web-based management console; GoToMyPC that enables mobile workstyles; LogMeIn Pro, a remote access service; and LastPass, a password management and single sign on solution. It serves enterprise customers, small and medium businesses, IT service providers, mobile carriers, customer service centers, OEMs, and consumers. The company was formerly known as 3am Labs, Inc. and changed its name to LogMeIn, Inc. in March 2006. LogMeIn, Inc. was founded in 2003 and is headquartered in Boston, Massachusetts.
Atlassian Corporation Plc, through its subsidiaries, provides team collaboration and productivity software solutions worldwide. It offers project tracking, content creation and sharing, real-time communication, and service management products to large and small organizations. The company's products include JIRA, a workflow management system that enables teams to plan, organize, track, and manage their work and projects; Confluence, a content collaboration platform that is used to create, share, organize, and discuss projects; HipChat that provides teams a way to communicate in real-time and share ideas, updates, codes, and files; Trello, a Web-based project management application for capturing and adding structure to fluid and fast-forming work for teams; Bitbucket, a code management and collaboration product for teams using distributed version control systems; and JIRA Service Desk, a service desk product for creating and managing service experiences for various service team providers, including IT help desks, and legal and HR teams. It also offers other tools for software developers, such as FishEye, Clover, Crowd, Crucible, Bamboo, SourceTree, and StatusPage. Atlassian Corporation Plc was founded in 2002 and is based in London, the United Kingdom.
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