Analyzing Dynatrace (DT) and Its Competitors

Dynatrace (NYSE:DT) is one of 953 publicly-traded companies in the “Software” industry, but how does it weigh in compared to its rivals? We will compare Dynatrace to similar businesses based on the strength of its analyst recommendations, earnings, profitability, valuation, risk, dividends and institutional ownership.

Profitability

This table compares Dynatrace and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dynatrace	7.42%	12.73%	7.17%
Dynatrace Competitors	-607.02%	22.93%	-8.85%

Earnings and Valuation

This table compares Dynatrace and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Dynatrace	$2.02 billion	$162.67 million	80.40
Dynatrace Competitors	$1.85 billion	$387.72 million	108.55

Dynatrace has higher revenue, but lower earnings than its rivals. Dynatrace is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Dynatrace has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Dynatrace’s rivals have a beta of 1.34, indicating that their average stock price is 34% more volatile than the S&P 500.

Institutional & Insider Ownership

94.3% of Dynatrace shares are owned by institutional investors. Comparatively, 41.9% of shares of all “Software” companies are owned by institutional investors. 0.7% of Dynatrace shares are owned by insiders. Comparatively, 19.9% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Dynatrace and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dynatrace	0	8	24	0	2.75
Dynatrace Competitors	5748	21526	44879	1497	2.57

Dynatrace presently has a consensus price target of $62.00, indicating a potential upside of 42.80%. As a group, “Software” companies have a potential upside of 28.83%. Given Dynatrace’s stronger consensus rating and higher possible upside, research analysts plainly believe Dynatrace is more favorable than its rivals.

Summary

Dynatrace beats its rivals on 7 of the 13 factors compared.

Dynatrace Company Profile

Dynatrace, Inc. provides a security platform for multicloud environments in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates Dynatrace, a security platform, which provides application and microservices monitoring, runtime application security, infrastructure monitoring, log management and analytics, digital experience monitoring, digital business analytics, and cloud automation. Its platform allows its customers to modernize and automate IT operations, delivers software, and enhance user experiences. In addition, the company offers implementation, consulting, and training services. It markets its products through a combination of direct sales team and a network of partners, including resellers, system integrators, and managed service providers. It serves customers in various industries comprising banking, financial services, government, insurance, retail and wholesale, transportation, and software. Dynatrace, Inc. was founded in 2005 and is headquartered in Waltham, Massachusetts.