Financial Analysis: Okta (NASDAQ:OKTA) versus Argo Blockchain (NASDAQ:ARBK)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Argo Blockchain	N/A	N/A	N/A
Okta	9.63%	4.50%	3.34%

Volatility & Risk

Argo Blockchain has a beta of 1.9, suggesting that its stock price is 90% more volatile than the S&P 500. Comparatively, Okta has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.

Insider and Institutional Ownership

2.4% of Argo Blockchain shares are owned by institutional investors. Comparatively, 86.6% of Okta shares are owned by institutional investors. 4.6% of Okta shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Argo Blockchain and Okta”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Argo Blockchain	$15.52 million	2.50	$5.08 million	($117.39)	-0.02
Okta	$2.92 billion	10.22	$235.00 million	$1.66	102.77

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Argo Blockchain and Okta, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Argo Blockchain	1	1	0	0	1.50
Okta	0	10	32	1	2.79

Okta has a consensus target price of $172.92, suggesting a potential upside of 1.36%. Given Okta’s stronger consensus rating and higher probable upside, analysts clearly believe Okta is more favorable than Argo Blockchain.

Summary

Okta beats Argo Blockchain on 14 of the 15 factors compared between the two stocks.

About Argo Blockchain

Argo Blockchain plc, together with its subsidiaries, engages in the bitcoin and other cryptocurrencies mining business worldwide. It engages in mining purpose-built computers for complex cryptographic algorithms. The company was formerly known as GoSun Blockchain Limited and changed its name to Argo Blockchain plc in December 2017. Argo Blockchain plc was incorporated in 2017 and is based in London, the United Kingdom.

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.