Atlassian Corporation (TEAM) and DocuSign, Inc. (DOCU) are two prominent players in the software application industry, each driving innovation in enterprise productivity and digital transformation. Atlassian excels in collaboration and project management tools, while DocuSign leads in e-signature and contract lifecycle management solutions. Their overlapping markets and distinct innovation strategies make this comparison crucial for investors seeking growth in tech. Let’s explore which company presents the most compelling investment opportunity today.
Table of contents
Companies Overview
I will begin the comparison between Atlassian Corporation and DocuSign, Inc. by providing an overview of these two companies and their main differences.
Atlassian Corporation Overview
Atlassian Corporation, headquartered in Sydney, Australia, specializes in designing and developing software products that enhance collaboration and project management. Its portfolio includes Jira, Trello, Confluence, and Bitbucket, serving both technical and business teams worldwide. Atlassian aims to improve work organization and agility through its extensive suite of tools, positioning itself as a key player in application software.
DocuSign, Inc. Overview
DocuSign, based in San Francisco, California, provides electronic signature and agreement management software globally. Its offerings include e-signature solutions, AI-driven contract lifecycle management, and industry-specific cloud products for sectors such as real estate and government. DocuSign focuses on digitizing agreement processes, simplifying contract workflows, and ensuring compliance across various business sizes.
Key similarities and differences
Both Atlassian and DocuSign operate in the software application industry with a focus on improving business operations via digital tools. Atlassian emphasizes collaboration and project management across teams, while DocuSign concentrates on digital agreements and contract automation. Despite their shared technological sector, Atlassian’s product suite is broader in collaboration software, whereas DocuSign specializes in electronic signature and workflow automation solutions.
Income Statement Comparison
Below is a side-by-side comparison of the most recent fiscal year income statement metrics for Atlassian Corporation and DocuSign, Inc.
| Metric | Atlassian Corporation | DocuSign, Inc. |
|---|---|---|
| Market Cap | 31.1B | 11.4B |
| Revenue | 5.22B | 3.0B |
| EBITDA | 24.0M | 357.3M |
| EBIT | -68.3M | 249.5M |
| Net Income | -257.0M | 1.07B |
| EPS | -0.98 | 5.23 |
| Fiscal Year | 2025 | 2025 |
Income Statement Interpretations
Atlassian Corporation
Atlassian’s revenue grew substantially from 2.1B in 2021 to 5.2B in 2025, with net income losses narrowing from -579M to -257M. Gross margins remained strong around 83%, but EBIT margins stayed negative, reflecting ongoing operational challenges. In 2025, revenue growth accelerated by nearly 20%, while net margin improved by 28.6%, indicating some financial stabilization despite losses.
DocuSign, Inc.
DocuSign saw revenue climb from 1.45B in 2021 to 3B in 2025, with net income turning positive and rising sharply to 1.07B. Gross margins held near 79%, and EBIT margins improved to 8.4% in 2025. The latest year showed moderate revenue growth of 7.8%, but net margin surged over 1200%, signaling strong operational leverage and profitability gains.
Which one has the stronger fundamentals?
DocuSign exhibits stronger fundamentals with positive net income and significant margin expansion, including a healthy EBIT margin and remarkable net margin growth. Atlassian, despite robust revenue increases, continues to report losses and negative EBIT margins, though it shows improving net margin trends. Overall, DocuSign’s consistent profitability contrasts with Atlassian’s ongoing net losses.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Atlassian Corporation (TEAM) and DocuSign, Inc. (DOCU) based on their most recent fiscal year data.
| Ratios | Atlassian Corporation (TEAM) 2025 | DocuSign, Inc. (DOCU) 2025 |
|---|---|---|
| ROE | -19.1% | 53.3% |
| ROIC | -4.5% | 9.1% |
| P/E | -207.1 | 18.5 |
| P/B | 39.5 | 9.9 |
| Current Ratio | 1.22 | 0.81 |
| Quick Ratio | 1.22 | 0.81 |
| D/E (Debt to Equity) | 0.92 | 0.06 |
| Debt-to-Assets | 20.5% | 3.1% |
| Interest Coverage | -4.27 | 129.0 |
| Asset Turnover | 0.86 | 0.74 |
| Fixed Asset Turnover | 19.0 | 7.28 |
| Payout Ratio | 0 | 0 |
| Dividend Yield | 0 | 0 |
Interpretation of the Ratios
Atlassian Corporation
Atlassian’s ratios show mixed strength with a slightly unfavorable overall profile. Key concerns include negative net margin (-4.92%) and return on equity (-19.08%), alongside a high price-to-book ratio of 39.51, suggesting potential overvaluation. The company does not pay dividends, likely reflecting reinvestment in growth and R&D, with no shareholder distributions reported.
DocuSign, Inc.
DocuSign exhibits a more favorable ratio profile, highlighted by a strong net margin (35.87%) and return on equity (53.32%). Some weaker points include a low current ratio (0.81) and an unfavorable price-to-book ratio near 9.87. The company also does not pay dividends, which may indicate a focus on reinvestment and innovation rather than shareholder payouts.
Which one has the best ratios?
DocuSign holds a slightly favorable ratio profile compared to Atlassian’s slightly unfavorable stance. DocuSign’s profitability and interest coverage ratios stand out positively, while Atlassian struggles with profitability and valuation concerns. Both companies avoid dividend payments, emphasizing growth over immediate shareholder returns.
Strategic Positioning
This section compares the strategic positioning of Atlassian Corporation and DocuSign, Inc., focusing on market position, key segments, and exposure to technological disruption:
Atlassian Corporation
- Market leader in software applications with global presence, facing typical tech sector competitive pressures.
- Diversified product portfolio including project management, collaboration, and developer tools driving revenues.
- Moderate exposure via cloud-based collaboration and developer platforms requiring continuous innovation.
DocuSign, Inc.
- Specialist in electronic signature software with strong presence in US and international markets.
- Concentrated on e-signature and contract lifecycle management solutions, targeting enterprise and small businesses.
- Exposure to AI-driven contract analytics and digital workflow automation as key technological disruptors.
Atlassian Corporation vs DocuSign, Inc. Positioning
Atlassian pursues a diversified software strategy across multiple collaboration and development tools, offering broad market reach. DocuSign focuses on a concentrated niche of digital agreements and contract management, leveraging AI and workflow automation for specialized growth.
Which has the best competitive advantage?
DocuSign shows a slightly favorable MOAT with growing profitability, indicating improving competitive strength. Atlassian’s very unfavorable MOAT and declining returns suggest weaker value creation and competitive positioning despite broader diversification.
Stock Comparison
The stock price movements of Atlassian Corporation (TEAM) and DocuSign, Inc. (DOCU) over the past year reveal contrasting trajectories, with TEAM experiencing a significant decline while DOCU shows moderate gains amid shifting trading volumes.
Trend Analysis
Atlassian Corporation’s stock showed a bearish trend over the past 12 months, declining by 42.01% with deceleration in the downward momentum and high volatility, ranging between $314.28 and $118.55.
DocuSign, Inc. displayed a bullish trend overall with a 9.63% increase in stock price, though recent months indicate a decelerating downtrend and lower volatility, with prices fluctuating between $106.99 and $50.84.
Comparing both stocks, DocuSign delivered the highest market performance over the year, contrasting with Atlassian’s pronounced bearish trend despite both facing seller-dominant activity in the recent period.
Target Prices
Here is the current analyst target price consensus for the selected companies.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Atlassian Corporation | 290 | 185 | 234.14 |
| DocuSign, Inc. | 88 | 70 | 76.86 |
Analysts expect Atlassian’s stock to rise significantly from its current price of $118.55, indicating strong growth potential. DocuSign also shows upside potential compared to its current price of $56.71, suggesting moderate appreciation.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Atlassian Corporation (TEAM) and DocuSign, Inc. (DOCU):
Rating Comparison
TEAM Rating
- Rating: C, considered very favorable overall
- Discounted Cash Flow Score: 5, very favorable
- ROE Score: 1, very unfavorable
- ROA Score: 1, very unfavorable
- Debt To Equity Score: 1, very unfavorable
- Overall Score: 2, moderate
DOCU Rating
- Rating: B+, considered very favorable overall
- Discounted Cash Flow Score: 5, very favorable
- ROE Score: 4, favorable
- ROA Score: 4, favorable
- Debt To Equity Score: 3, moderate
- Overall Score: 3, moderate
Which one is the best rated?
DOCU holds a higher rating (B+) compared to TEAM’s C rating. It also scores better in ROE, ROA, debt-to-equity, and overall scores, indicating stronger financial metrics based on the provided data.
Scores Comparison
Here is a comparison of the financial health scores for Atlassian Corporation and DocuSign, Inc.:
TEAM Scores
- Altman Z-Score: 4.70, indicating a safe zone status
- Piotroski Score: 5, reflecting average financial strength
DOCU Scores
- Altman Z-Score: 4.43, indicating a safe zone status
- Piotroski Score: 5, reflecting average financial strength
Which company has the best scores?
Both Atlassian Corporation and DocuSign have Altman Z-Scores in the safe zone, with Atlassian slightly higher at 4.70 versus 4.43 for DocuSign. Their Piotroski Scores are equal at 5, indicating similar average financial strength.
Grades Comparison
Here is the grades comparison for Atlassian Corporation and DocuSign, Inc.:
Atlassian Corporation Grades
The following table summarizes recent grades assigned by major grading firms for Atlassian Corporation:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| BTIG | Maintain | Buy | 2026-01-13 |
| Piper Sandler | Maintain | Overweight | 2026-01-05 |
| Bernstein | Maintain | Outperform | 2025-11-18 |
| Macquarie | Maintain | Outperform | 2025-11-03 |
| Mizuho | Maintain | Outperform | 2025-10-31 |
| Bernstein | Maintain | Outperform | 2025-10-31 |
| TD Cowen | Maintain | Hold | 2025-10-27 |
| BMO Capital | Maintain | Outperform | 2025-10-24 |
| UBS | Maintain | Neutral | 2025-10-24 |
| Keybanc | Maintain | Overweight | 2025-10-23 |
Overall, Atlassian shows a strong positive trend with multiple top-tier firms rating it mostly as Buy, Overweight, or Outperform.
DocuSign, Inc. Grades
The following table summarizes recent grades assigned by major grading firms for DocuSign, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| RBC Capital | Maintain | Sector Perform | 2026-01-05 |
| Evercore ISI Group | Maintain | In Line | 2025-12-05 |
| UBS | Maintain | Neutral | 2025-12-05 |
| Wells Fargo | Maintain | Equal Weight | 2025-12-05 |
| Piper Sandler | Maintain | Neutral | 2025-12-05 |
| RBC Capital | Maintain | Sector Perform | 2025-12-05 |
| JP Morgan | Maintain | Neutral | 2025-12-05 |
| B of A Securities | Maintain | Neutral | 2025-12-05 |
| Needham | Maintain | Hold | 2025-12-05 |
| Baird | Maintain | Neutral | 2025-12-05 |
DocuSign’s ratings mostly range between Hold and Neutral, indicating a cautious or moderate outlook by analysts.
Which company has the best grades?
Atlassian Corporation has received stronger grades overall, with a majority of Buy and Outperform ratings, while DocuSign is mostly rated Hold or Neutral. This suggests a more favorable analyst sentiment towards Atlassian, potentially impacting investor confidence and valuation expectations.
Strengths and Weaknesses
Below is a comparison table highlighting the key strengths and weaknesses of Atlassian Corporation (TEAM) and DocuSign, Inc. (DOCU) based on their latest financial and operational data.
| Criterion | Atlassian Corporation (TEAM) | DocuSign, Inc. (DOCU) |
|---|---|---|
| Diversification | Moderate: Revenue mainly from License and Service ($4.93B in 2025) with less variety in segments | Moderate: Revenue dominated by Subscription and Circulation ($2.90B in 2025) with limited service diversification |
| Profitability | Weak: Negative net margin (-4.92%) and ROE (-19.08%); company is shedding value | Strong: High net margin (35.87%) and ROE (53.32%), steadily improving profitability |
| Innovation | Unfavorable ROIC trend (-132.5%); declining return on invested capital indicates challenges | Positive ROIC trend (+167.8%); increasing profitability suggests effective innovation and capital use |
| Global presence | Strong brand with global software adoption but financials indicate operational challenges | Solid global footprint with growing market acceptance and efficient capital deployment |
| Market Share | Significant in collaboration software, but value destruction raises concerns | Growing share in e-signature and digital agreement market, with improving financial health |
Key takeaways: DocuSign demonstrates stronger profitability and improving capital efficiency, reflecting a slightly favorable investment profile. Atlassian, despite its market presence, currently shows declining profitability and value destruction, signaling caution for investors.
Risk Analysis
Below is a comparative risk table for Atlassian Corporation (TEAM) and DocuSign, Inc. (DOCU) based on the most recent data from 2025.
| Metric | Atlassian Corporation (TEAM) | DocuSign, Inc. (DOCU) |
|---|---|---|
| Market Risk | Moderate (Beta 0.888) | Moderate (Beta 0.994) |
| Debt level | Moderate (D/E 0.92, Neutral) | Low (D/E 0.06, Favorable) |
| Regulatory Risk | Moderate (Tech sector regulation) | Moderate (Tech and data privacy laws) |
| Operational Risk | Moderate (Negative margins, integration complexity) | Low (Strong margins, scalable platform) |
| Environmental Risk | Low (Software industry, AU-based) | Low (Software industry, US-based) |
| Geopolitical Risk | Moderate (Australian HQ, global operations) | Moderate (US HQ, global operations) |
Atlassian faces higher operational risk due to ongoing negative profitability and integration challenges, while DocuSign benefits from strong margins and low debt. Both companies operate in regulated tech sectors with moderate market and geopolitical risks. Debt remains a key differentiator, with DocuSign’s low leverage providing a financial safety buffer.
Which Stock to Choose?
Atlassian Corporation (TEAM) shows favorable income growth with a 19.66% revenue increase in 2025, yet profitability remains weak, reflected in negative net margin (-4.92%) and return on equity (-19.08%). Its financial ratios are slightly unfavorable overall, with a moderate debt level and a very favorable rating, but it is currently destroying value as ROIC is well below WACC.
DocuSign, Inc. (DOCU) demonstrates stable income growth with a 7.78% revenue rise in 2025 and strong profitability, evidenced by a net margin of 35.87% and return on equity of 53.32%. Financial ratios are slightly favorable overall, supported by low debt and a very favorable rating. The company shows a slightly favorable moat with a growing ROIC trend, indicating improving profitability.
For investors prioritizing growth potential, Atlassian’s rapid revenue expansion and strong rating might appear attractive despite its current value destruction. Conversely, those seeking profitability and improving competitive positioning may find DocuSign’s favorable financial ratios and positive moat trend more appealing. The choice could depend on an investor’s risk tolerance and strategy focus.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Atlassian Corporation and DocuSign, Inc. to enhance your investment decisions:
