Atlassian Corporation PLC (TEAM) vs Zoom Communications, Inc. (ZM)

Atlassian Corporation PLC and Zoom Communications, Inc. are both Software Application companies. Atlassian Corporation PLC is the larger, with a market value of $51.4B against $28.5B — 1.8× the size. Atlassian Corporation PLC has negative trailing earnings, so its P/E is not meaningful; Zoom Communications, Inc. trades at 8.6×. Atlassian Corporation PLC grew revenue faster over the last twelve months: 26.0% against 5.04%. Zoom Communications, Inc. has the higher net margin (65.2% vs −0.82%) and the higher return on invested capital (18.3% vs 0.80%). Across the 21 metrics below, Zoom Communications, Inc. leads on 18 and Atlassian Corporation PLC on 3.

Valuation

Metric TEAM ZM Software Application median
P/E n/m 8.64 26.76
P/S 7.59 5.60 2.99
P/B 47.15 2.47 2.59
Price to free cash flow 37.97 14.52 18.02
EV/EBITDA 329.10 13.21 16.06
EV/Sales 7.56 4.15 2.92
Earnings yield (0.10%) 11.57% 0.00%
Free cash flow yield 2.63% 6.89% 2.00%

Profitability

Metric TEAM ZM Software Application median
Gross margin 84.83% 77.30% 67.03%
Operating margin 0.16% 23.73% 0.00%
Net margin (0.82%) 65.19% 0.00%
Free cash flow margin 20.07% 38.55% 5.71%
Return on equity (4.48%) 32.14% 0.00%
Return on assets (0.89%) 26.43% 0.00%
Return on invested capital 0.80% 18.27% 0.00%

Growth

Metric TEAM ZM Software Application median
Revenue growth (TTM) 26.02% 5.04% 12.43%
EPS growth (last fiscal year) 78.57% 92.52% 31.92%
Revenue growth, 5-year CAGR 25.76% 12.92% 14.34%
Net income growth, 5-year CAGR 0.00% 23.12% 0.00%

Health

Metric TEAM ZM Software Application median
Debt to equity 0.93 0.00 0.03
Current ratio 0.78 3.83 1.56
Net debt to EBITDA (1.66) (5.08) 0.08

Dividend

Metric TEAM ZM Software Application median
Dividend yield — — 0.93%
Payout ratio — — 0.29

Size

Metric TEAM ZM Software Application median
Market cap 51.40b 28.50b 423.97m

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