Atom Finance Review
- Ease of Use
- Tools and Features
If you’re looking for a stock research platform, you may have come across Atom Finance. Atom Finance is a stock news and research platform that includes many interesting tools and features, such as modeling capabilities and company comparison. Is this platform right for you? Read our review of Atom Finance and learn the answer to that question and more.
What Is Atom Finance?
Atom Finance is a stock news and research platform. The platform stands out for its modeling capabilities, as users can plug in their own values for a company’s future fundamentals to derive a fair stock price. But, it doesn’t capitalize on this feature by allowing you to evaluate portfolios or compare companies using data from these custom models. In that sense, Atom Finance can be useful for some long-term investors, but the platform still has a lot of work to do to build out its features. Let’s take a closer look with our review of Atom Finance.
Atom Finance Cost
Atom Finance is completely free to use. The platform is working on a paid service called Atom+, but it has not yet been released and there is no pricing information at this time.
Atom Finance Features
The most unique aspect of Atom Finance is its financial models, which it places under a tab labeled “Sandbox.” With these models, you have the option to customize many of the assumptions that analysts use when calculating a target price for a stock. For example, you can modify the number of shares outstanding, the share price, and the total debt and revenue that you think a company will capture in the future. Based on that, Atom Finance will automatically recalculate fundamentals like enterprise value-to-EBITDA and price-to-earnings ratio.
From there, you can model a fair value for the share price of a stock. You can use the price-to-earnings ratio and calculate a forward multiple to get the fair price, or use total enterprise value to EBITDA or revenue. Helpfully, Atom Finance also lets you choose to see analysts’ consensus estimates for all of these values, so you can see how your analysis stacks up against what experts are thinking.
If you want to get really deep into modeling, you can also edit detailed fundamentals – for example, revenue, year-over-year growth percentage, and even tax rate, among around a dozen other metrics. Any model you create can be named and saved for future reference, which allows you to adjust expectations as new data comes in.
News feeds play a big role throughout Atom Finance. Within the platform, you can follow any number of stocks or market sectors and Atom Finance will automatically curate a news feed for you.
Surprisingly, Atom Finance doesn’t have many stories from the biggest names in the stock news world – platforms like Benzinga, MarketWatch, and Bloomberg. Instead, many of the stories are from Reuters or from Atom Finance’s own press team. This is unfortunate since you don’t get quite as wide a view of the market as many comparable stock news platforms offer. It’s also not uncommon to have more than an hour pass between stories, even if you follow market leaders like Amazon and Apple.
Atom Finance also has a feature it calls “X-ray,” which lets you search for mentions of companies and/or keywords across news articles, earnings call transcripts, and SEC filings. This can be helpful if you want to dig a little deeper into a company or its competition.
Atom Finance lets you directly compare two or more companies, although this feature was a little disappointing. The results are output into a table rather than displayed in a graphical form. You can look at a variety of fundamental metrics such as price-to-earnings ratio, revenue growth, and EBITDA, but the list of factors to compare is far from exhaustive.
Unfortunately, there’s no built-in screener or sector listings to help you decide which companies to compare. You have to enter tickers manually, so this tool is only useful if you already know which companies are worth comparing for your purposes.
You also can’t compare companies based on models you’ve created in the Sandbox. That’s a huge blow, since it prevents you from really taking advantage of the custom modeling component of this platform.
You can also use Atom Finance as a portfolio tracker. Strangely, though, there’s no way to enter transactions manually onto the platform. You have to connect a brokerage account in order to track investments. This also means that you cannot create a simulated portfolio and watch how it performs over time.
Once you’ve imported transactions, Atom Finance will graph your returns against the S&P 500 and calculate the average P/E and other fundamental metrics for your portfolio. It will also display your portfolio diversity based on which sectors the stocks you hold fall into. Of course, you can also track your positions and trades over several different timeframes.
If you have multiple brokerage accounts, you can aggregate the data or look at each account individually.
Customization And Layout
Atom Finance is highly customizable in that you have complete control over which stocks and market sectors you want to follow. The platform will automatically tailor your news feeds and the Hub to these stocks and sectors.
One thing missing from Atom Finance, though, is a discover feature that allows you to find related stocks based on recent performance. The only way to “discover” new stocks is to look for competitors to the stocks you currently follow.
Atom Finance can import trade data from a wide variety of US brokerages, including Schwab, E*TRADE, Fidelity, Interactive Brokers, Robinhood, and more. Adding your brokerage account to the platform enables you to track your return and analyze your holdings.
Atom Finance Platform Differentiators
Atom Finance does a little bit of everything, but it leaves a lot of major gaps for traders to fall through. The Sandbox modeling is arguably its best and most unique feature, but the platform doesn’t really capitalize on it. You can’t access your saved models throughout the platform, for example when comparing multiple companies’ fundamentals or analyzing the stocks in your portfolio. That dramatically limits the usefulness of creating custom models, although they’re still very valuable for analyzing a single investment.
The news and portfolio tracking features of Atom Finance are nothing special. In fact, there are many better free or inexpensive stock news aggregators. There are also plenty of free portfolio trackers that offer more robust features than Atom Finance’s tracker, including the ability to input trades manually.
What Type of Trader Is Atom Finance Best For?
Atom Finance is best for fundamental investors who can take advantage of the platform’s custom modeling features. This is a very unique feature for long-term investors to have access to, and it’s very impressive that the platform offers this modeling for free. That said, investors should be cautious when creating their own models. The modeling tool is easily accessible, but it should only be used by investors who feel comfortable diving deep into earnings reports and call transcripts to come up with projections for the future.
- Completely free to use
- Custom modeling of stock fair value
- Curated news feeds
- Basic portfolio tracking
- Compare fundamentals across companies
- Modeling data isn’t available across the platform
- News feeds don’t pull stories from several major outlets