Financial Survey: Expensify (NASDAQ:EXFY) and Okta (NASDAQ:OKTA)

Okta (NASDAQ:OKTA) and Expensify (NASDAQ:EXFY) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Institutional & Insider Ownership

86.6% of Okta shares are held by institutional investors. Comparatively, 68.4% of Expensify shares are held by institutional investors. 4.6% of Okta shares are held by company insiders. Comparatively, 11.7% of Expensify shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Okta and Expensify, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Okta	0	11	31	1	2.77
Expensify	1	0	2	0	2.33

Okta currently has a consensus price target of $182.21, indicating a potential downside of 11.27%. Expensify has a consensus price target of $3.00, indicating a potential upside of 27.66%. Given Expensify’s higher possible upside, analysts clearly believe Expensify is more favorable than Okta.

Volatility and Risk

Okta has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Expensify has a beta of 1.73, suggesting that its share price is 73% more volatile than the S&P 500.

Profitability

This table compares Okta and Expensify’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Okta	9.63%	4.50%	3.34%
Expensify	-11.31%	-11.54%	-8.34%

Valuation and Earnings

This table compares Okta and Expensify”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Okta	$2.92 billion	12.30	$235.00 million	$1.66	123.71
Expensify	$142.10 million	1.31	-$21.39 million	($0.17)	-13.82

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

Summary

Okta beats Expensify on 12 of the 15 factors compared between the two stocks.

About Okta

Okta, Inc. operates as an identity partner in the United States and internationally. The company offers Okta's suite of products and services used to manage and secure identities, such as Single Sign-On that enables users to access applications in the cloud or on-premises from various devices; Adaptive Multi-Factor Authentication provides a layer of security for cloud, mobile, web applications, and data; API Access Management enables organizations to secure APIs; Access Gateway enables organizations to extend Workforce Identity Cloud; and Okta Device Access enables end users to securely log in to devices with Okta credentials. It also provides Universal Directory, a cloud-based system of record to store and secure user, application, and device profiles for an organization; Lifecycle Management enables IT organizations or developers to manage a user's identity throughout its lifecycle; Okta Identity Governance provides identity access management and identity governance solutions; Advanced Server Access offers access management to secure cloud infrastructure; Okta Privileged Access enables organizations to reduce risk with unified access and governance management for on-premises and cloud resources; and Okta Workforce Identity Workflows. In addition, the company offers Universal Login, which allows customers to provide login experience across different applications and devices; and Attack Protection, a suite of security capabilities that protects customers from different types of malicious traffic. Further, it provides Adaptive Multi-Factor Authentication, Passwordless, Machine to Machine, Private Cloud, Organizations, Actions and Extensibility, and Enterprise Connections. The company sells its products directly to customers through sales force and channel partners. The company was formerly known as Saasure, Inc. Okta, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.

About Expensify

Expensify, Inc. provides a cloud-based expense management software platform to individuals and corporations, small and midsized businesses, and enterprises in the United States and internationally. The company’s platform enables users to manage corporate cards, pay bills, generate invoices, collect payments, and book travel. It also offers track and submit plans for individuals. The company was founded in 2008 and is based in Portland, Oregon.