Okta (NASDAQ:OKTA – Get Free Report) and Digital Turbine (NASDAQ:APPS – Get Free Report) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.
Risk & Volatility
Okta has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, Digital Turbine has a beta of 2.87, suggesting that its stock price is 187% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Okta and Digital Turbine, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Okta | 0 | 11 | 31 | 1 | 2.77 |
| Digital Turbine | 1 | 1 | 4 | 0 | 2.50 |
Earnings and Valuation
This table compares Okta and Digital Turbine”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Okta | $2.92 billion | 11.44 | $235.00 million | $1.66 | 115.11 |
| Digital Turbine | $565.25 million | 2.38 | -$37.73 million | ($0.26) | -42.67 |
Okta has higher revenue and earnings than Digital Turbine. Digital Turbine is trading at a lower price-to-earnings ratio than Okta, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Okta and Digital Turbine’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Okta | 9.63% | 4.50% | 3.34% |
| Digital Turbine | -4.46% | 38.34% | 8.27% |
Insider & Institutional Ownership
86.6% of Okta shares are held by institutional investors. Comparatively, 63.7% of Digital Turbine shares are held by institutional investors. 4.6% of Okta shares are held by company insiders. Comparatively, 6.0% of Digital Turbine shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Okta beats Digital Turbine on 10 of the 15 factors compared between the two stocks.
About Okta
Okta, Inc. operates as an identity partner in the United States and internationally. The company offers Okta's suite of products and services used to manage and secure identities, such as Single Sign-On that enables users to access applications in the cloud or on-premises from various devices; Adaptive Multi-Factor Authentication provides a layer of security for cloud, mobile, web applications, and data; API Access Management enables organizations to secure APIs; Access Gateway enables organizations to extend Workforce Identity Cloud; and Okta Device Access enables end users to securely log in to devices with Okta credentials. It also provides Universal Directory, a cloud-based system of record to store and secure user, application, and device profiles for an organization; Lifecycle Management enables IT organizations or developers to manage a user's identity throughout its lifecycle; Okta Identity Governance provides identity access management and identity governance solutions; Advanced Server Access offers access management to secure cloud infrastructure; Okta Privileged Access enables organizations to reduce risk with unified access and governance management for on-premises and cloud resources; and Okta Workforce Identity Workflows. In addition, the company offers Universal Login, which allows customers to provide login experience across different applications and devices; and Attack Protection, a suite of security capabilities that protects customers from different types of malicious traffic. Further, it provides Adaptive Multi-Factor Authentication, Passwordless, Machine to Machine, Private Cloud, Organizations, Actions and Extensibility, and Enterprise Connections. The company sells its products directly to customers through sales force and channel partners. The company was formerly known as Saasure, Inc. Okta, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.
About Digital Turbine
Digital Turbine, Inc., through its subsidiaries, operates a mobile growth platform for advertisers, publishers, carriers, and device original equipment manufacturers (OEMs). The company operates through two segments, On Device Solutions and App Growth Platform. Its application media platform delivers mobile applications to various publishers, carriers, OEMs, and devices; and content media platform offers news, weather, sports, and other content, as well as programmatic advertising and media content delivery services, and sponsored and editorial content media. The company also provides direct campaign management products, such as the DT DSP and DT Offer Wall; ad monetization solutions allow mobile app publishers and developers to monetize their monthly active users via display, native, and video advertising; brands and agencies runs mobile brand-awareness campaigns on the direct mobile app inventory; and app developers and other performance-focused advertisers execute mobile user acquisition campaigns for their apps and products. It operates in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, China, Mexico, Central America, and South America. The company is headquartered in Austin, Texas.
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