Atlassian Corporation and Domo, Inc. are two prominent players in the software application industry, each offering innovative platforms designed to enhance business productivity and data management. While Atlassian focuses on comprehensive collaboration and project management tools, Domo specializes in cloud-based business intelligence solutions. Their overlapping markets and distinct innovation strategies make this a compelling comparison. Join me as we identify which company presents the most attractive opportunity for investors today.
Table of contents
Companies Overview
I will begin the comparison between Atlassian Corporation and Domo, Inc. by providing an overview of these two companies and their main differences.
Atlassian Corporation Overview
Atlassian Corporation, headquartered in Sydney, Australia, designs and develops a broad portfolio of software products aimed at enhancing collaboration and project management for technical and business teams worldwide. Its offerings include Jira, Confluence, Trello, and other tools that support workflow management, service desk operations, code collaboration, and enterprise agility. Founded in 2002, Atlassian is a leading player in the software application industry with a focus on integrated teamwork solutions.
Domo, Inc. Overview
Domo, Inc., based in American Fork, Utah, operates a cloud-based business intelligence platform that connects all organizational levels with real-time data and insights. Its platform facilitates decision-making by enabling access via smartphones and integrating people, data, and systems. Founded in 2010, Domo serves clients domestically and internationally, positioning itself in the software application sector with a focus on data-driven business management solutions.
Key similarities and differences
Both Atlassian and Domo operate in the software application industry and focus on improving organizational efficiency through technology. Atlassian offers a wide range of collaboration and project management tools, targeting diverse business functions, while Domo specializes more narrowly in cloud-based business intelligence and real-time data integration. Atlassian’s larger scale and broader product portfolio contrast with Domo’s more focused BI platform and smaller workforce.
Income Statement Comparison
This table compares key income statement metrics for Atlassian Corporation and Domo, Inc. based on their most recent fiscal year reports.
| Metric | Atlassian Corporation | Domo, Inc. |
|---|---|---|
| Market Cap | 31.1B | 257M |
| Revenue | 5.22B | 317M |
| EBITDA | 24.0M | -50.0M |
| EBIT | -68.3M | -59.3M |
| Net Income | -257.0M | -81.9M |
| EPS | -0.98 | -2.13 |
| Fiscal Year | 2025 | 2025 |
Income Statement Interpretations
Atlassian Corporation
Atlassian’s revenue grew significantly from 2.09B in 2021 to 5.22B in 2025, with net income losses narrowing from -579M to -257M. Gross margin remained strong and favorable at 82.84%, but EBIT and net margins stayed negative, though net margin improved by 28.62% in 2025. The company showed solid revenue and EPS growth, despite operating losses.
Domo, Inc.
Domo’s revenue increased from 210M in 2021 to 317M in 2025, but experienced a slight dip of -0.61% last year. Net income remained negative, reaching -82M in 2025, with worsening EBIT and net margins. Gross margin stayed favorable at 74.45%, but multiple negative growth indicators last year reflect challenges in profitability and margin stability.
Which one has the stronger fundamentals?
Atlassian demonstrates stronger fundamentals with higher revenue growth and improved net margin over the period, supported by a favorable gross margin and EPS growth. Domo shows modest revenue gains but struggles with deeper net losses and negative margin trends. Overall, Atlassian’s income statement reflects more favorable financial health and growth dynamics compared to Domo.
Financial Ratios Comparison
The table below presents the most recent key financial ratios for Atlassian Corporation and Domo, Inc., reflecting their fiscal year 2025 performances.
| Ratios | Atlassian Corporation (TEAM) | Domo, Inc. (DOMO) |
|---|---|---|
| ROE | -19.1% | 46.2% |
| ROIC | -4.5% | 194.7% |
| P/E | -207.1 | -4.0 |
| P/B | 39.5 | -1.84 |
| Current Ratio | 1.22 | 0.56 |
| Quick Ratio | 1.22 | 0.56 |
| D/E | 0.92 | -0.76 |
| Debt-to-Assets | 20.5% | 63.2% |
| Interest Coverage | -4.27 | -3.0 |
| Asset Turnover | 0.86 | 1.48 |
| Fixed Asset Turnover | 19.0 | 8.17 |
| Payout ratio | 0% | 0% |
| Dividend yield | 0% | 0% |
Interpretation of the Ratios
Atlassian Corporation
Atlassian shows a mixed financial profile with several unfavorable ratios, including negative net margin (-4.92%) and return on equity (-19.08%), indicating operational challenges. However, the company benefits from a favorable weighted average cost of capital (7.85%) and strong fixed asset turnover (19.02). Atlassian does not pay dividends, likely due to negative profitability and a focus on reinvestment and growth initiatives.
Domo, Inc.
Domo presents a polarized ratio set with strong returns on equity (46.23%) and invested capital (194.73%), but suffers from poor liquidity, as reflected by a low current ratio (0.56). The company also shows unfavorable debt-related metrics and no dividend payments, suggesting ongoing investment in R&D and expansion rather than shareholder distributions, consistent with its high-growth phase.
Which one has the best ratios?
Domo’s ratios reflect a more favorable balance between profitability and asset efficiency, despite liquidity and leverage concerns. Atlassian displays more negative profitability and return metrics but maintains better liquidity and lower leverage risk. Overall, Domo’s profile appears more neutral while Atlassian’s is slightly unfavorable based on the ratio evaluations.
Strategic Positioning
This section compares the strategic positioning of Atlassian Corporation and Domo, Inc., focusing on market position, key segments, and exposure to technological disruption:
Atlassian Corporation
- Large market cap of 31B, operates globally with NASDAQ listing, facing competitive software industry pressure.
- Diverse software portfolio including project management, collaboration, security, and developer tools driving growth.
- Offers a broad suite of interconnected products, enhancing adaptability; technology disruption risk present but mitigated by innovation.
Domo, Inc.
- Smaller market cap of 257M, US-focused with NASDAQ listing, competing in cloud-based BI platforms.
- Focused on cloud BI platform offering real-time data access and management primarily via subscription services.
- Concentrates on cloud BI with mobile integration; faces technological disruption risks typical for cloud platforms.
Atlassian Corporation vs Domo, Inc. Positioning
Atlassian pursues a diversified strategy with multiple software products spanning project management to security, enabling broad business adoption. Domo focuses on a concentrated cloud BI platform with subscription-driven revenue, positioning it narrowly but with targeted innovation. Atlassian’s scale offers advantages in market reach, while Domo’s niche focus may limit exposure but also growth opportunities.
Which has the best competitive advantage?
According to MOAT evaluations, Domo demonstrates a very favorable competitive advantage with growing ROIC and value creation, whereas Atlassian shows a very unfavorable position with declining profitability and value destruction.
Stock Comparison
This chart illustrates the stock price movements of Atlassian Corporation (TEAM) and Domo, Inc. (DOMO) over the past 12 months, highlighting significant declines and trading volume dynamics.
Trend Analysis
Atlassian Corporation (TEAM) exhibited a bearish trend over the past year with a -42.01% price change, showing deceleration and high volatility, with prices ranging from 314.28 to 118.55.
Domo, Inc. (DOMO) also followed a bearish trajectory, declining by -44.54%, with deceleration and low volatility, hitting a high of 18.06 and a low of 6.15 during the same period.
Comparatively, both stocks underperformed, but Atlassian’s price decline was slightly less severe, delivering the highest market performance between the two.
Target Prices
The target price consensus for Atlassian Corporation and Domo, Inc. reflects moderate optimism from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Atlassian Corporation | 290 | 185 | 234.14 |
| Domo, Inc. | 13 | 10 | 11.5 |
Analysts expect Atlassian’s stock to rise significantly from its current price of 118.55 USD, while Domo’s consensus target price of 11.5 USD also suggests upside from its current 6.15 USD. Both stocks show potential for growth according to these estimates.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Atlassian Corporation and Domo, Inc.:
Rating Comparison
Atlassian Corporation Rating
- Rating: C, assessed as Very Favorable
- Discounted Cash Flow Score: 5 indicating Very Favorable
- ROE Score: 1 indicating Very Unfavorable
- ROA Score: 1 indicating Very Unfavorable
- Debt To Equity Score: 1 indicating Very Unfavorable
- Overall Score: 2 indicating Moderate
Domo, Inc. Rating
- Rating: C, assessed as Very Favorable
- Discounted Cash Flow Score: 1 indicating Very Unfavorable
- ROE Score: 5 indicating Very Favorable
- ROA Score: 1 indicating Very Unfavorable
- Debt To Equity Score: 1 indicating Very Unfavorable
- Overall Score: 2 indicating Moderate
Which one is the best rated?
Both Atlassian and Domo hold the same overall rating of C with a Moderate overall score. Atlassian scores very favorably on discounted cash flow, whereas Domo excels in return on equity, showing distinct strengths in different financial metrics.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for Atlassian Corporation and Domo, Inc.:
Atlassian Corporation Scores
- Altman Z-Score: 4.70 indicating a safe zone, low bankruptcy risk.
- Piotroski Score: 5, classified as average financial strength.
Domo, Inc. Scores
- Altman Z-Score: -10.10 indicating distress zone, high bankruptcy risk.
- Piotroski Score: 3, classified as very weak financial strength.
Which company has the best scores?
Atlassian Corporation shows a strong Altman Z-Score in the safe zone and an average Piotroski Score, while Domo, Inc. is in the distress zone with a very weak Piotroski Score. Based on these figures, Atlassian has the better financial strength scores.
Grades Comparison
Here is the comparison of recent verified grades for Atlassian Corporation and Domo, Inc.:
Atlassian Corporation Grades
The following table shows verified grades from reputable grading companies 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 |
Atlassian’s grades predominantly indicate a positive outlook with multiple “Outperform,” “Buy,” and “Overweight” ratings maintained consistently.
Domo, Inc. Grades
Here are the verified grades from recognized grading companies for Domo, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| DA Davidson | Maintain | Neutral | 2025-12-05 |
| TD Cowen | Maintain | Buy | 2025-12-05 |
| Lake Street | Maintain | Hold | 2025-12-05 |
| DA Davidson | Maintain | Neutral | 2025-12-01 |
| JMP Securities | Maintain | Market Outperform | 2025-09-10 |
| DA Davidson | Maintain | Neutral | 2025-08-28 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-08-28 |
| TD Cowen | Upgrade | Buy | 2025-08-26 |
| JMP Securities | Maintain | Market Outperform | 2025-06-25 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-06-25 |
Domo’s grades present a mixed but generally positive trend with several “Market Outperform,” “Buy,” and “Overweight” ratings alongside some “Neutral” and “Hold” ratings.
Which company has the best grades?
Atlassian Corporation has received more consistent high grades such as “Outperform” and “Buy” compared to Domo, Inc., whose ratings include a greater proportion of “Neutral” and “Hold.” This suggests Atlassian may be viewed more favorably by analysts, potentially impacting investor confidence and portfolio decisions.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for Atlassian Corporation (TEAM) and Domo, Inc. (DOMO) based on the most recent financial and operational data available.
| Criterion | Atlassian Corporation (TEAM) | Domo, Inc. (DOMO) |
|---|---|---|
| Diversification | Moderate: Revenue mainly from License and Service (4.93B USD in 2025) with some other services | Limited: Primarily Subscription-based with smaller Professional Services segment (0.29B USD in 2025) |
| Profitability | Weak: Negative net margin (-4.92%) and ROIC (-4.48%) signal value destruction and declining profitability | Mixed: Negative net margin (-25.84%) but strong ROIC (194.73%) and ROE (46.23%) indicate operational efficiency but overall losses |
| Innovation | Neutral to unfavorable: Declining ROIC trend (-132.5%) suggests challenges in sustaining competitive advantage | Very favorable: Strong ROIC growth (191.5%) and value creation show durable innovation advantage |
| Global presence | Strong: Large scale and established market presence with diversified revenue streams | Smaller scale and more niche, less diversified globally |
| Market Share | Significant in collaboration software sector with consistent revenue growth | Smaller share in business intelligence and analytics, growing but more volatile |
Key takeaways: Domo exhibits a strong competitive moat and value creation despite unprofitable net margins, driven by efficient capital use and innovation. Atlassian, while larger and diversified, struggles with declining profitability and value destruction, warranting caution in investment decisions.
Risk Analysis
Below is a comparative risk table for Atlassian Corporation (TEAM) and Domo, Inc. (DOMO) based on the most recent 2025 data:
| Metric | Atlassian Corporation (TEAM) | Domo, Inc. (DOMO) |
|---|---|---|
| Market Risk | Moderate (Beta 0.89, stable but volatile range 118-326 USD) | High (Beta 1.65, volatile range 6-18.5 USD) |
| Debt level | Moderate (Debt/Equity 0.92, Debt/Assets 20.5%) | High (Debt/Equity negative but Debt/Assets 63.2%) |
| Regulatory Risk | Moderate (Operating mainly in AU, US markets, typical tech sector regulations) | Moderate (US-focused, exposed to stricter data/privacy laws) |
| Operational Risk | Moderate (Large employee base 12K+, complex product suite) | High (Smaller scale 888 employees, still scaling platform) |
| Environmental Risk | Low (Software company with minimal direct environmental impact) | Low (Similar software sector, low environmental footprint) |
| Geopolitical Risk | Moderate (Headquartered in Australia, global presence) | Moderate (US-based, some international exposure) |
Synthesis: Domo faces higher market and operational risks with significant debt burden and financial distress signals (Altman Z-Score in distress zone). Atlassian shows moderate risk but more financial stability and a safer bankruptcy profile. Market volatility and debt levels are the most impactful risks, particularly for Domo, which also shows weaker liquidity and profitability metrics as of 2025. Investors should weigh these risks carefully against growth potential.
Which Stock to Choose?
Atlassian Corporation (TEAM) shows a favorable income statement with 71.43% positive metrics, including strong revenue growth of 149.64% over five years. However, profitability ratios and returns on equity and assets are unfavorable, and the company has a slightly unfavorable overall financial ratios profile with 42.86% unfavorable ratios. Debt levels appear moderate, and the company is rated very favorable overall, supported by a safe Altman Z-Score of 4.7. Yet, its economic moat is very unfavorable due to declining ROIC below WACC, indicating value destruction.
Domo, Inc. (DOMO) displays an unfavorable income statement with 50% negative metrics and a modest 50.84% revenue growth over five years. Financial ratios are evenly split, yielding a neutral global rating, but the company has a very favorable economic moat with ROIC well above WACC and a growing ROIC trend signaling durable competitive advantage. However, liquidity ratios and debt-to-assets are weak, and Altman Z-Score indicates financial distress at -10.1, with a weak Piotroski score of 3.
Investors seeking growth potential with a safer financial profile and favorable income trends might find Atlassian’s stock more suitable, while those focusing on companies with strong economic moats and improving returns on invested capital, albeit with higher financial risk, could view Domo as an interesting case. The choice may depend on risk tolerance and investment strategy preferences.
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 Domo, Inc. to enhance your investment decisions:
