Head to Head Comparison: Atlassian (NASDAQ:TEAM) versus Materialise (NASDAQ:MTLS)

Atlassian (NASDAQ:TEAM) and Materialise (NASDAQ:MTLS) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.

Risk and Volatility

Atlassian has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, Materialise has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlassian	$4.57 billion	13.87	-$300.52 million	($1.52)	-160.12
Materialise	$266.38 million	1.56	$7.28 million	$0.19	37.05

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

Insider & Institutional Ownership

94.4% of Atlassian shares are held by institutional investors. Comparatively, 19.3% of Materialise shares are held by institutional investors. 38.5% of Atlassian shares are held by company insiders. Comparatively, 1.2% of Materialise shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings for Atlassian and Materialise, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlassian	0	9	14	0	2.61
Materialise	0	0	1	0	3.00

Atlassian presently has a consensus price target of $258.00, suggesting a potential upside of 6.01%. Materialise has a consensus price target of $9.50, suggesting a potential upside of 34.94%. Given Materialise’s stronger consensus rating and higher possible upside, analysts clearly believe Materialise is more favorable than Atlassian.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Atlassian	-8.59%	-23.35%	-4.86%
Materialise	3.73%	5.88%	3.59%

Summary

Materialise beats Atlassian on 9 of the 14 factors compared between the two stocks.

About Atlassian

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 Materialise

Materialise NV provides additive manufacturing and medical software, and 3D printing services in the Americas, Europe and Africa, and the Asia-Pacific. The company operates through three segments: Materialise Software, Materialise Medical, and Materialise Manufacturing. The Materialise Software segment offers software through programs and platforms that enable and enhance the functionality of 3D printers and of 3D printing operations. Its software interfaces between various types of 3D printers; and various software applications and capturing technologies, including computer-aided design/computer-aided manufacturing packages and 3D scanners. This segment serves 3D printing machine manufacturers; production companies and contract manufacturers in automotive, aerospace, consumer goods, and hearing aid industries; and 3D printing service bureaus through its sales force, Website, and third party distributors. The Materialise Medical segment provides medical software that allows medical-image based analysis, planning, and engineering, as well as patient-specific design and printing of surgical devices and implants. It serves medical device companies, hospitals, universities, research institutes, and industrial companies through its direct sales force, Website, and picture archiving and communication system. The Materialise Manufacturing segment provides 3D printing services, design and engineering services, and rapid prototyping and additive manufacturing of production parts to industrial and commercial customers. The company has collaboration agreements with Zimmer Biomet Holdings, Inc.; Encore Medical, L.P.; DePuy Synthes Companies of Johnson & Johnson; Limacorporate Spa; Mathys AG; Corin Ltd; Smith & Nephew Inc.; Corin Ltd; Medtronic Inc.; and Abbott Laboratories Inc. Materialise NV was incorporated in 1990 and is headquartered in Leuven, Belgium.