Critical Survey: GitLab (NASDAQ:GTLB) and Autodesk (NASDAQ:ADSK)

GitLab (NASDAQ:GTLB) and Autodesk (NASDAQ:ADSK) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, risk, dividends, institutional ownership and profitability.

Valuation and Earnings

This table compares GitLab and Autodesk”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GitLab	$579.91 million	17.02	-$424.17 million	($0.32)	-190.00
Autodesk	$5.50 billion	11.10	$906.00 million	$5.04	56.29

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

Risk & Volatility

GitLab has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Autodesk has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for GitLab and Autodesk, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GitLab	0	3	23	1	2.93
Autodesk	0	8	15	0	2.65

GitLab presently has a consensus price target of $76.62, suggesting a potential upside of 26.01%. Autodesk has a consensus price target of $334.45, suggesting a potential upside of 17.88%. Given GitLab’s stronger consensus rating and higher possible upside, analysts plainly believe GitLab is more favorable than Autodesk.

Profitability

This table compares GitLab and Autodesk’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GitLab	-6.83%	-11.72%	-5.98%
Autodesk	18.30%	53.87%	12.31%

Institutional and Insider Ownership

95.0% of GitLab shares are owned by institutional investors. Comparatively, 90.2% of Autodesk shares are owned by institutional investors. 21.4% of GitLab shares are owned by insiders. Comparatively, 0.1% of Autodesk shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Autodesk beats GitLab on 8 of the 15 factors compared between the two stocks.

About GitLab

GitLab Inc., through its subsidiaries, develops software for the software development lifecycle in the United States, Europe, and the Asia Pacific. It offers GitLab, a DevOps platform, which is a single application that leads to faster cycle time and allows visibility throughout and control over various stages of the DevOps lifecycle. The company helps organizations to plan, build, secure, and deploy software to drive business outcomes. It also provides related training and professional services. The company was formerly known as GitLab B.V. and changed its name to GitLab Inc. in July 2015. GitLab Inc. was founded in 2011 and is headquartered in San Francisco, California.

About Autodesk

Autodesk, Inc. provides 3D design, engineering, and entertainment technology solutions worldwide. The company offers AutoCAD Civil 3D, a surveying, design, analysis, and documentation solution for civil engineering, including land development, transportation, and environmental projects; BuildingConnected, a SaaS preconstruction solution; AutoCAD, a software for professional design, drafting, detailing, and visualization; AutoCAD LT, a drafting and detailing software; computer-aided manufacturing (CAM) software for computer numeric control machining, inspection, and modelling for manufacturing; Fusion 360, a 3D CAD, CAM, and computer-aided engineering tool; and Industry Collections tools for professionals in architecture, engineering and construction, product design and manufacturing, and media and entertainment collection industries. It also provides Inventor tools for 3D mechanical design, simulation, analysis, tooling, visualization, and documentation; Vault, a data management software to manage data in one central location, accelerate design processes, and streamline internal/external collaboration; Maya and 3ds Max software products that offer 3D modeling, animation, effects, rendering, and compositing solutions; and ShotGrid, a cloud-based software for review and production tracking in the media and entertainment industry. It sells its products and services to customers directly, as well as through a network of resellers and distributors. Autodesk, Inc. was incorporated in 1982 and is headquartered in San Francisco, California.