Contrasting Expensify (NASDAQ:EXFY) and Okta (NASDAQ:OKTA)

Expensify (NASDAQ:EXFY) and Okta (NASDAQ:OKTA) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Insider & Institutional Ownership

68.4% of Expensify shares are held by institutional investors. Comparatively, 86.6% of Okta shares are held by institutional investors. 11.7% of Expensify shares are held by company insiders. Comparatively, 4.6% of Okta shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Expensify and Okta, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Expensify	1	0	2	0	2.33
Okta	0	11	31	1	2.77

Expensify currently has a consensus target price of $3.00, indicating a potential upside of 28.48%. Okta has a consensus target price of $175.11, indicating a potential downside of 8.36%. Given Expensify’s higher probable upside, equities research analysts plainly believe Expensify is more favorable than Okta.

Profitability

This table compares Expensify and Okta’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Expensify	-11.31%	-11.54%	-8.34%
Okta	9.63%	4.50%	3.34%

Valuation & Earnings

This table compares Expensify and Okta”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Expensify	$142.10 million	1.30	-$21.39 million	($0.17)	-13.74
Okta	$2.92 billion	11.44	$235.00 million	$1.66	115.11

Okta has higher revenue and earnings than Expensify. Expensify is trading at a lower price-to-earnings ratio than Okta, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Expensify has a beta of 1.73, indicating that its stock price is 73% more volatile than the S&P 500. Comparatively, Okta has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.

Summary

Okta beats Expensify on 12 of the 15 factors compared between the two stocks.

About Expensify

Expensify, Inc. provides a cloud-based expense management software platform to individuals and corporations, small and midsized businesses, and enterprises in the United States and internationally. The company’s platform enables users to manage corporate cards, pay bills, generate invoices, collect payments, and book travel. It also offers track and submit plans for individuals. The company was founded in 2008 and is based in Portland, Oregon.

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.