Head to Head Comparison: Tuya (NYSE:TUYA) versus Atlassian (NASDAQ:TEAM)

Tuya (NYSE:TUYA) and Atlassian (NASDAQ:TEAM) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Tuya and Atlassian, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tuya	0	0	0	0	0.00
Atlassian	0	4	19	1	2.88

Atlassian has a consensus price target of $285.29, indicating a potential upside of 32.99%. Given Atlassian’s stronger consensus rating and higher possible upside, analysts clearly believe Atlassian is more favorable than Tuya.

Volatility & Risk

Tuya has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, Atlassian has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tuya	-5.55%	-0.58%	-0.52%
Atlassian	-7.22%	-17.37%	-3.70%

Institutional & Insider Ownership

11.5% of Tuya shares are held by institutional investors. Comparatively, 94.4% of Atlassian shares are held by institutional investors. 2.1% of Tuya shares are held by insiders. Comparatively, 38.5% of Atlassian shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Tuya and Atlassian”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tuya	$311.64 million	4.74	-$60.31 million	$0.04	68.50
Atlassian	$4.96 billion	11.35	-$300.52 million	($1.66)	-129.22

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

Summary

Atlassian beats Tuya on 9 of the 15 factors compared between the two stocks.

About Tuya

Tuya Inc. offers purpose-built Internet of Things (IoT) cloud development platform in the People's Republic of China and internationally. The company provides platform-as-a-service that enables business, original equipment manufacturers, brands, and developers to develop, launch, manage, and monetize software-enabled smart devices and services; and industry software-as-a-service, which enables businesses to deploy, connect, and manage various types of smart devices. It also offers cloud-based software value-added services that provides end users with smart features, such as cloud storage; and Cube Smart Private Cloud Solution which enables conglomerates to build their own autonomous and controllable IoT platforms; and could-based services to businesses, developers, and end users to develop and manage IoT experiences. In addition, the company provides smart solutions for IoT devices that integrates software capabilities; and enables developers to activate an IoT ecosystem of brands, OEMs, partners, and end users to engage and communicate through a range of smart devices, as well as sells finished smart devices. It offers its solutions to smart home, smart business, renewable energy, education, agriculture, outdoors and sport, and entertainment industries. The company was incorporated in 2014 and is based in Hangzhou, the People's Republic of China.

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.