IT vs. OKTA: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at IT and OKTA, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | IT | OKTA |
|---|---|---|
| Company Name | Gartner, Inc. | Okta, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | IT Services | IT Services |
| Market Capitalization | 17.30 billion USD | 14.55 billion USD |
| Exchange | NYSE | NasdaqGS |
| Listing Date | October 5, 1993 | April 7, 2017 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of IT and OKTA by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | IT | OKTA |
|---|---|---|
| 5-Day Price Return | 1.05% | -2.09% |
| 13-Week Price Return | -3.21% | -8.78% |
| 26-Week Price Return | -48.51% | -32.33% |
| 52-Week Price Return | -58.13% | 7.04% |
| Month-to-Date Return | -6.97% | -8.29% |
| Year-to-Date Return | -52.31% | 6.52% |
| 10-Day Avg. Volume | 1.06M | 1.70M |
| 3-Month Avg. Volume | 1.37M | 3.05M |
| 3-Month Volatility | 38.90% | 29.78% |
| Beta | 1.09 | 0.76 |
Profitability
Return on Equity (TTM)
IT
71.62%
IT Services Industry
- Max
- 37.08%
- Q3
- 19.28%
- Median
- 14.70%
- Q1
- 6.70%
- Min
- -8.16%
IT’s Return on Equity of 71.62% is exceptionally high, placing it well beyond the typical range for the IT Services industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
OKTA
2.59%
IT Services Industry
- Max
- 37.08%
- Q3
- 19.28%
- Median
- 14.70%
- Q1
- 6.70%
- Min
- -8.16%
OKTA’s Return on Equity of 2.59% is in the lower quartile for the IT Services industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
Net Profit Margin (TTM)
IT
13.71%
IT Services Industry
- Max
- 17.01%
- Q3
- 11.02%
- Median
- 6.91%
- Q1
- 3.07%
- Min
- -5.13%
A Net Profit Margin of 13.71% places IT in the upper quartile for the IT Services industry, signifying strong profitability and more effective cost management than most of its peers.
OKTA
6.08%
IT Services Industry
- Max
- 17.01%
- Q3
- 11.02%
- Median
- 6.91%
- Q1
- 3.07%
- Min
- -5.13%
OKTA’s Net Profit Margin of 6.08% is aligned with the median group of its peers in the IT Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
IT
15.62%
IT Services Industry
- Max
- 23.01%
- Q3
- 15.32%
- Median
- 9.57%
- Q1
- 4.91%
- Min
- -9.58%
An Operating Profit Margin of 15.62% places IT in the upper quartile for the IT Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
OKTA
3.18%
IT Services Industry
- Max
- 23.01%
- Q3
- 15.32%
- Median
- 9.57%
- Q1
- 4.91%
- Min
- -9.58%
OKTA’s Operating Profit Margin of 3.18% is in the lower quartile for the IT Services industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | IT | OKTA |
|---|---|---|
| Return on Equity (TTM) | 71.62% | 2.59% |
| Return on Assets (TTM) | 10.87% | 1.80% |
| Net Profit Margin (TTM) | 13.71% | 6.08% |
| Operating Profit Margin (TTM) | 15.62% | 3.18% |
| Gross Profit Margin (TTM) | 68.17% | 76.91% |
Financial Strength
Current Ratio (MRQ)
IT
0.88
IT Services Industry
- Max
- 3.02
- Q3
- 1.91
- Median
- 1.36
- Q1
- 1.02
- Min
- 0.49
IT’s Current Ratio of 0.88 falls into the lower quartile for the IT Services industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
OKTA
1.35
IT Services Industry
- Max
- 3.02
- Q3
- 1.91
- Median
- 1.36
- Q1
- 1.02
- Min
- 0.49
OKTA’s Current Ratio of 1.35 aligns with the median group of the IT Services industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
IT
4.43
IT Services Industry
- Max
- 2.55
- Q3
- 1.30
- Median
- 0.55
- Q1
- 0.14
- Min
- 0.00
With a Debt-to-Equity Ratio of 4.43, IT operates with exceptionally high leverage compared to the IT Services industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
OKTA
0.13
IT Services Industry
- Max
- 2.55
- Q3
- 1.30
- Median
- 0.55
- Q1
- 0.14
- Min
- 0.00
Falling into the lower quartile for the IT Services industry, OKTA’s Debt-to-Equity Ratio of 0.13 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio (TTM)
IT
20.97
IT Services Industry
- Max
- 129.00
- Q3
- 56.00
- Median
- 11.69
- Q1
- 1.68
- Min
- -28.15
IT’s Interest Coverage Ratio of 20.97 is positioned comfortably within the norm for the IT Services industry, indicating a standard and healthy capacity to cover its interest payments.
OKTA
-9.31
IT Services Industry
- Max
- 129.00
- Q3
- 56.00
- Median
- 11.69
- Q1
- 1.68
- Min
- -28.15
OKTA has a negative Interest Coverage Ratio of -9.31. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | IT | OKTA |
|---|---|---|
| Current Ratio (MRQ) | 0.88 | 1.35 |
| Quick Ratio (MRQ) | 0.83 | 1.30 |
| Debt-to-Equity Ratio (MRQ) | 4.43 | 0.13 |
| Interest Coverage Ratio (TTM) | 20.97 | -9.31 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
IT
0.00%
IT Services Industry
- Max
- 4.66%
- Q3
- 2.02%
- Median
- 0.66%
- Q1
- 0.00%
- Min
- 0.00%
IT currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
OKTA
0.00%
IT Services Industry
- Max
- 4.66%
- Q3
- 2.02%
- Median
- 0.66%
- Q1
- 0.00%
- Min
- 0.00%
OKTA currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio (TTM)
IT
0.00%
IT Services Industry
- Max
- 93.78%
- Q3
- 63.22%
- Median
- 24.64%
- Q1
- 0.00%
- Min
- 0.00%
IT has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
OKTA
0.00%
IT Services Industry
- Max
- 93.78%
- Q3
- 63.22%
- Median
- 24.64%
- Q1
- 0.00%
- Min
- 0.00%
OKTA has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | IT | OKTA |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
IT
18.80
IT Services Industry
- Max
- 45.03
- Q3
- 30.25
- Median
- 21.01
- Q1
- 16.50
- Min
- 0.00
IT’s P/E Ratio of 18.80 is within the middle range for the IT Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
OKTA
86.20
IT Services Industry
- Max
- 45.03
- Q3
- 30.25
- Median
- 21.01
- Q1
- 16.50
- Min
- 0.00
At 86.20, OKTA’s P/E Ratio is exceptionally high, exceeding the typical maximum for the IT Services industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Price-to-Sales Ratio (TTM)
IT
2.58
IT Services Industry
- Max
- 5.24
- Q3
- 4.01
- Median
- 2.18
- Q1
- 1.08
- Min
- 0.00
IT’s P/S Ratio of 2.58 aligns with the market consensus for the IT Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
OKTA
5.24
IT Services Industry
- Max
- 5.24
- Q3
- 4.01
- Median
- 2.18
- Q1
- 1.08
- Min
- 0.00
OKTA’s P/S Ratio of 5.24 is in the upper echelon for the IT Services industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio (MRQ)
IT
35.77
IT Services Industry
- Max
- 9.42
- Q3
- 5.79
- Median
- 3.70
- Q1
- 2.30
- Min
- 0.79
At 35.77, IT’s P/B Ratio is at an extreme premium to the IT Services industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
OKTA
2.54
IT Services Industry
- Max
- 9.42
- Q3
- 5.79
- Median
- 3.70
- Q1
- 2.30
- Min
- 0.79
OKTA’s P/B Ratio of 2.54 is within the conventional range for the IT Services industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | IT | OKTA |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 18.80 | 86.20 |
| Price-to-Sales Ratio (TTM) | 2.58 | 5.24 |
| Price-to-Book Ratio (MRQ) | 35.77 | 2.54 |
| Price-to-Free Cash Flow Ratio (TTM) | 13.69 | 17.28 |