Okta (NASDAQ: OKTA) is one of 113 publicly-traded companies in the “Software” industry, but how does it compare to its competitors? We will compare Okta to similar companies based on the strength of its risk, profitability, valuation, dividends, institutional ownership, earnings and analyst recommendations.

Institutional and Insider Ownership

15.6% of Okta shares are held by institutional investors. Comparatively, 57.8% of shares of all “Software” companies are held by institutional investors. 17.4% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Okta and its competitors’ 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 -45.72% -18.54% -6.80%

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Okta $160.32 million -$83.50 million -25.91
Okta Competitors $2.20 billion $402.78 million 458.99

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Okta and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Okta 0 3 7 0 2.70
Okta Competitors 338 2226 4622 95 2.61

Okta currently has a consensus price target of $33.29, suggesting a potential upside of 11.70%. As a group, “Software” companies have a potential upside of 9.05%. Given Okta’s stronger consensus rating and higher possible upside, analysts clearly believe Okta is more favorable than its competitors.

Summary

Okta competitors beat Okta on 9 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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