Atlassian vs TFS Financial Which Outperforms?

Atlassian and TFS Financial are two companies that operate in the financial sector, each with its own unique strengths and weaknesses. Atlassian is a software company that specializes in collaboration tools, project management, and productivity software. TFS Financial, on the other hand, is a financial services company that focuses on providing retail banking, mortgage lending, and other financial services. Investors looking to diversify their portfolio in the financial sector may find these two stocks appealing for different reasons. Let's delve deeper into the analysis of Atlassian vs TFS Financial stocks.

Atlassian or TFS Financial?

When comparing Atlassian and TFS Financial, 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 TFS Financial.

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 TFS Financial has a dividend yield of 9.93%. 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, TFS Financial reports a 5-year dividend growth of 6.11% year and a payout ratio of 73.84%.

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 -163.19 and TFS Financial's P/E ratio at 49.74. 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 62.24 while TFS Financial's P/B ratio is 2.13.

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 TFS Financial's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Atlassian's ROE at -38.28% and TFS Financial's ROE at 4.22%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $237.80 for Atlassian and $14.09 for TFS Financial. Over the past year, Atlassian's prices ranged from $135.29 to $258.69, with a yearly change of 91.21%. TFS Financial's prices fluctuated between $11.70 and $15.25, with a yearly change of 30.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.