ASOS vs Atlassian Which Is a Smarter Choice?

ASOS and Atlassian are two companies that operate in very different sectors of the market. ASOS is a popular online retailer, specializing in fashion and beauty products, while Atlassian is a software company that provides collaboration tools for businesses. Both companies have seen significant growth in recent years, but their stocks have performed in contrasting ways. ASOS has experienced volatility due to the competitive nature of the retail industry, while Atlassian has shown more steady growth thanks to the increasing demand for its software solutions. Investors should consider these factors when evaluating the potential of ASOS vs Atlassian stocks.

ASOS or Atlassian?

When comparing ASOS and Atlassian, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between ASOS and Atlassian.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. ASOS has a dividend yield of -%, while Atlassian has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ASOS reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Atlassian reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with ASOS P/E ratio at -1.73 and Atlassian's P/E ratio at -167.79. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ASOS P/B ratio is 0.69 while Atlassian's P/B ratio is 64.00.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ASOS has seen a 5-year revenue growth of 0.17%, while Atlassian's is 2.65%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASOS's ROE at -33.38% and Atlassian's ROE at -38.28%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4.58 for ASOS and $244.30 for Atlassian. Over the past year, ASOS's prices ranged from $4.11 to $5.89, with a yearly change of 43.31%. Atlassian's prices fluctuated between $135.29 and $258.69, with a yearly change of 91.21%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.