Critical Review: Okta (OKTA) & Talend (TLND)

Okta (NASDAQ:OKTA) and Talend (NASDAQ:TLND) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Okta and Talend, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Okta 0 0 14 0 3.00
Talend 1 0 5 0 2.67

Okta currently has a consensus target price of $69.25, suggesting a potential downside of 0.24%. Talend has a consensus target price of $70.00, suggesting a potential downside of 3.96%. Given Okta’s stronger consensus rating and higher probable upside, research analysts plainly believe Okta is more favorable than Talend.

Institutional and Insider Ownership

58.8% of Okta shares are owned by institutional investors. Comparatively, 78.1% of Talend shares are owned by institutional investors. 20.6% of Okta shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Okta and Talend’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Okta $259.99 million 29.15 -$114.35 million ($1.37) -50.67
Talend $148.60 million 14.29 -$31.20 million ($1.00) -72.89

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

Risk & Volatility

Okta has a beta of -0.59, meaning that its stock price is 159% less volatile than the S&P 500. Comparatively, Talend has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Okta -38.13% -56.91% -21.12%
Talend -19.77% -190.77% -18.35%

Summary

Okta beats Talend on 8 of the 14 factors compared between the two stocks.

About Okta

Okta, Inc. provides identity solutions for enterprises, small and medium-sized businesses, universities, non-profits, and government agencies in the United States and internationally. The company offers Okta Identity Cloud, a platform that offers a suite of products to manage and secure identities, such as Universal Directory, a cloud-based system of record to store and secure user, application, and device profiles for an organization; Single Sign-On that enables users to access their applications in the cloud or on-premise from various devices with a single entry of their user credentials; Adaptive Multi-Factor Authentication, a product that provides an additional layer of security for Web and mobile applications, and data of organization; Lifecycle Management, which enables IT organizations or developers to manage a user's identity throughout its lifecycle; API Access Management that enables organizations to secure APIs; and Mobility Management, which simplifies and automates mobile device administration and provisioning across phones, tablets, and laptops. It also offers customer support and training, and professional services. Okta, Inc. sells its products directly to customers through sales force, as well as through channel partners. The company was formerly known as Saasure, Inc. Okta, Inc. was founded in 2009 and is headquartered in San Francisco, California.

About Talend

Talend S.A. provides platform to address IT integration needs in various industries. It designs and develops Talend Data Fabric, a software platform that integrates data and applications in real time across big data and cloud environments, as well as traditional systems, which allows organizations to develop a unified view of their business and customers. The company's Talend Data Fabric platform includes data integration, big data integration, application, cloud integration, master data management, and self-service data preparation products. It also provides technical support; and consulting and training services. The company sells its products directly to customers through sales force, as well as indirectly through value added channel partners and resellers in North America, Europe, the Middle East, and the Asia-Pacific. Talend S.A. was founded in 2005 and is based in Suresnes, France. Talend S.A. is a subsidiary of Talend Inc.

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