Seek Returns logo

ADI vs. OKTA: A Head-to-Head Stock Comparison

Updated

Here’s a clear look at ADI and OKTA, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.

Company Overview

ADI dominates in value with a market cap of 110.22 billion USD, eclipsing OKTA’s 20.49 billion USD by roughly 5.38×.

With betas of 0.98 for ADI and 0.96 for OKTA, both show similar volatility profiles relative to the overall market.

SymbolADIOKTA
Company NameAnalog Devices, Inc.Okta, Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySemiconductorsSoftware - Infrastructure
CEOMr. Vincent T. RocheMr. Todd McKinnon
Price222.22 USD122.59 USD
Market Cap110.22 billion USD20.49 billion USD
Beta0.980.96
ExchangeNASDAQNASDAQ
IPO DateMarch 17, 1980April 7, 2017
ADRNoNo

Performance Comparison

This chart compares the performance of ADI and OKTA over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Hover over the lines to see the investment’s value and total return (%) at specific dates.

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

The section examines key financial ratios to assess the valuation of ADI and OKTA based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

  • OKTA features a high P/E of 752.28, indicating strong growth expectations, compared to ADI at 70.50, which trades at a more standard valuation based on its current earnings.
SymbolADIOKTA
Price-to-Earnings Ratio (P/E, TTM)70.50752.28
Forward PEG Ratio (TTM)3.9387.22
Price-to-Sales Ratio (P/S, TTM)11.807.85
Price-to-Book Ratio (P/B, TTM)3.143.29
Price-to-Free Cash Flow Ratio (P/FCF, TTM)34.6227.90
EV-to-EBITDA (TTM)28.11339.06
EV-to-Sales (TTM)12.368.05
EV-to-Free Cash Flow (TTM)36.2528.64

Dividend Comparison

ADI delivers a 1.69% dividend yield, blending income with growth, whereas OKTA appears to retain its profits, possibly to fund operations, R&D, or other growth initiatives.

SymbolADIOKTA
Dividend Yield (TTM)1.69%0.00%

Financial Strength Metrics Comparison

This section dives into the financial resilience of ADI and OKTA, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

  • ADI meets its interest obligations (ratio 6.09). In stark contrast, OKTA’s negative ratio (-37.00) means its operating earnings (EBIT) don't cover basic operations, let alone interest, signaling serious financial trouble.
SymbolADIOKTA
Current Ratio (TTM)1.931.35
Quick Ratio (TTM)1.431.35
Debt-to-Equity Ratio (TTM)0.220.15
Debt-to-Assets Ratio (TTM)0.160.10
Interest Coverage Ratio (TTM)6.09-37.00