Atlassian Corporation PLC (TEAM) vs Workday, Inc. (WDAY)

Atlassian Corporation PLC and Workday, Inc. are both Software Application companies. Atlassian Corporation PLC and Workday, Inc. are of similar size ($48.5B and $46.1B). Atlassian Corporation PLC has negative trailing earnings, so its P/E is not meaningful; Workday, Inc. trades at 38.2×. Atlassian Corporation PLC grew revenue faster over the last twelve months: 26.0% against 13.4%. Workday, Inc. has the higher net margin (12.3% vs −0.82%) and the higher return on invested capital (11.2% vs 0.80%). Across the 20 metrics below, Workday, Inc. leads on 16 and Atlassian Corporation PLC on 4.

Valuation

Metric TEAM WDAY Software Application median
P/E n/m 38.16 24.79
P/S 7.43 4.57 2.67
P/B 46.15 7.18 3.01
Price to free cash flow 37.16 16.33 16.59
EV/EBITDA 322.09 26.07 14.40
EV/Sales 7.40 4.53 2.62
Earnings yield (0.10%) 2.62% 0.00%
Free cash flow yield 2.69% 6.12% 1.91%

Profitability

Metric TEAM WDAY Software Application median
Gross margin 84.83% 75.80% 67.03%
Operating margin 0.16% 10.68% 0.00%
Net margin (0.82%) 12.32% 0.00%
Free cash flow margin 20.07% 28.01% 4.32%
Return on equity (4.48%) 16.01% 0.00%
Return on assets (0.89%) 7.40% 0.00%
Return on invested capital 0.80% 11.22% 0.00%

Growth

Metric TEAM WDAY Software Application median
Revenue growth (TTM) 26.02% 13.35% 12.40%
EPS growth (last fiscal year) 78.57% 32.82% —
Revenue growth, 5-year CAGR 25.76% 17.21% 13.72%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric TEAM WDAY Software Application median
Debt to equity 0.93 0.46 0.02
Current ratio 0.78 0.91 1.55
Net debt to EBITDA (1.66) (1.81) 0.06

Dividend

Metric TEAM WDAY Software Application median
Dividend yield — — 1.25%
Payout ratio 0.00 0.00 0.00

Size

Metric TEAM WDAY Software Application median
Market cap 48.48b 46.09b 396.11m

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