Okta (OKTA) vs. Its Rivals Head to Head Analysis

Okta (NASDAQ: OKTA) is one of 111 publicly-traded companies in the “Software” industry, but how does it compare to its peers? We will compare Okta to related companies based on the strength of its institutional ownership, profitability, risk, valuation, analyst recommendations, earnings and dividends.

Insider and Institutional Ownership

13.4% of Okta shares are held by institutional investors. Comparatively, 57.6% of shares of all “Software” companies are held by institutional investors. 17.8% of shares of all “Software” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Okta and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Okta $160.32 million -$83.50 million -23.05
Okta Competitors $2.20 billion $401.02 million 420.63

Okta’s peers have higher revenue and earnings than Okta. Okta is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Okta and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Okta -46.70% -169.65% -35.59%
Okta Competitors -56.54% -25.99% -8.35%

Analyst Ratings

This is a summary of current recommendations for Okta and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Okta 0 3 6 0 2.67
Okta Competitors 310 2143 4542 91 2.62

Okta presently has a consensus target price of $33.00, indicating a potential upside of 24.48%. As a group, “Software” companies have a potential upside of 9.86%. Given Okta’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Okta is more favorable than its peers.

Summary

Okta peers beat Okta on 8 of the 12 factors compared.

Okta Company Profile

Okta, Inc. is a United States-based independent provider of identity for the enterprise. The Company’s Okta Identity Cloud connects and protects employees. It also connects enterprises to their partners, suppliers and customers. The Company offers products, such as Okta information technology (IT) Products and Okta for Developers. Its Okta IT Products include Single Sign-On, Mobility Management, Adaptive Multi-Factor Authentication, Lifecycle Management and Universal Directory. The Okta for Developers include Complete Authentication, User Management, Application Programming Interface (API) Access Management and Developer Tools. The Company offers solutions, such as access applications across multiple domains; cloud applications on mobile devices; connecting to distributor and supplier identities; employee single sign-on (SSO) to applications; employee system of record; secure customer identity management; secure infrastructure and services, and mobile device lifecycle automation.

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