OKTA vs. LogMeIn

Is LogM a direct competitor of OKTA? The TTM revenue for LOGM was 1.2B with a gross profit of 922M, compared with OKTA’s TTM revenue of 400M with a gross profit of 286M. Yet, the market cap of LOGM is 4.13B vs. OKTA’s 8.9B. It’s true OKTA is growing much faster (50% vs. 12%). However, LOGM is profitable with a profit margin of ~6%.

How do you reconcile the vast difference in how the market values these two companies?

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How do you reconcile the vast difference in how the market values these two companies?

I suspect the reasoning is deeper than can be gleaned from simply what you wrote.
There could be lots of differences. Maybe LOGM has a much smaller addressable market. Maybe the growth rate has declined dramatically as they are getting their lunch eaten by a competitor (tech differences). Maybe acquiring new customers is becoming harder and harder. Maybe churn is high. Maybe a huge debt load. The list goes on and on…

I just don’t have any interest in looking further at LOGM, but I’m not saying it wouldn’t be interesting to know. You have my curiosity piqued, but time just doesn’t allow for me to research everyone of my curiosities. I’d get nothing done.

Let us know if you find out.


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LogMeIn doesn’t appear to be a competitor of OKTA at all. From what I understand they mostly provide remote login (as in remotely logging into another computer) services. OKTA on the other hand provides employees access to a suite of their companies applications via a single point sign on. So not really similar at all.

My guess is that LOGM has a much lower valuation due to having already tapped the vast majority of their TAM, lack of competitive advantage, and forecasting single digit growth going forward. The lesson here if any is to be sure to sell before growth slows greatly (which we already knew.)

I do think it is a useful exercise to investigate why some Saas companies have much lower valuations so we can make sure to recognize and avoid those qualities early on before the stock price falls or stagnates.


I’m not sure I would categorize LOGM as a SaaS company, first of all. Their main claim to fame is allowing remote access of other systems (PCs) from “wherever.” Now, there may be a “cloud” in the middle to make that happen (and I’ve used it in the past until they became more onerous to the free users), and maybe there’s a subscription model that’s similar to what OKTA has, but that might be the only close tie-in.

They’re in very different spaces – OKTA is all about identity management and application+user security, LOGM is all about being able to connect to your desktop from some other location. And I think the valuation translates to that. Security overall has a constant spotlight on it, due to the successes OKTA and other vendors have had, as well as the continuous stream of hacked-and-released data (most recently, data on Chinese “ready to breed” women, courtesy of an unsecured MongoDB database out on the interwebs).

I also tend to think that anyone who needed remote access already has it in place, so the untapped market for LOGM has to be much smaller than OKTA’s.