Atlassian vs ServiceNow Which Is More Profitable?

Atlassian and ServiceNow are two major players in the software industry, with both companies offering a range of innovative solutions aimed at boosting productivity and efficiency in businesses around the world. As the demand for their products and services continues to grow, investors are closely watching the performance of their stocks. Atlassian has seen strong growth in recent years, while ServiceNow has also experienced significant gains. Understanding the key differences between these two companies and how they are positioned in the market is crucial for investors looking to make informed decisions about their stock portfolios.

Atlassian or ServiceNow?

When comparing Atlassian and ServiceNow, 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 Atlassian and ServiceNow.

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. Atlassian has a dividend yield of -%, while ServiceNow has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Atlassian reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, ServiceNow 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 Atlassian P/E ratio at -184.97 and ServiceNow's P/E ratio at 173.00. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Atlassian P/B ratio is 70.55 while ServiceNow's P/B ratio is 24.88.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Atlassian has seen a 5-year revenue growth of 2.65%, while ServiceNow's is 2.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Atlassian's ROE at -38.28% and ServiceNow's ROE at 15.86%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $274.58 for Atlassian and $1114.60 for ServiceNow. Over the past year, Atlassian's prices ranged from $135.29 to $287.97, with a yearly change of 112.85%. ServiceNow's prices fluctuated between $637.99 and $1157.90, with a yearly change of 81.49%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.