Head-To-Head Analysis: Dynatrace (NYSE:DT) versus ExlService (NASDAQ:EXLS)

Dynatrace (NYSE:DT) and ExlService (NASDAQ:EXLS) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.

Profitability

This table compares Dynatrace and ExlService’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dynatrace	9.55%	9.75%	6.45%
ExlService	12.02%	26.66%	15.39%

Valuation & Earnings

This table compares Dynatrace and ExlService”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dynatrace	$1.93 billion	6.22	$483.68 million	$0.61	66.06
ExlService	$2.09 billion	2.29	$251.02 million	$1.54	19.86

Dynatrace has higher earnings, but lower revenue than ExlService. ExlService is trading at a lower price-to-earnings ratio than Dynatrace, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

94.3% of Dynatrace shares are owned by institutional investors. Comparatively, 92.9% of ExlService shares are owned by institutional investors. 0.6% of Dynatrace shares are owned by insiders. Comparatively, 4.0% of ExlService shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Dynatrace has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, ExlService has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Dynatrace and ExlService, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dynatrace	0	6	19	0	2.76
ExlService	0	1	4	0	2.80

Dynatrace presently has a consensus target price of $53.48, indicating a potential upside of 32.72%. ExlService has a consensus target price of $43.60, indicating a potential upside of 42.53%. Given ExlService’s stronger consensus rating and higher possible upside, analysts clearly believe ExlService is more favorable than Dynatrace.

Summary

ExlService beats Dynatrace on 9 of the 14 factors compared between the two stocks.

About Dynatrace

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.

About ExlService

ExlService Holdings, Inc. operates as a data analytics, and digital operations and solutions company in the United States and internationally. The company operates through Insurance, Healthcare, Analytics, and Emerging Business segments. It also provides digital operations and solutions and analytics-driven services, such as claims processing, premium and benefit administration, agency management, account reconciliation, policy research, underwriting support, new business acquisition, policy servicing, premium audit, surveys, billing and collection, commercial and residential survey, and customer service using digital technology, artificial intelligence, machine learning, and advanced automation; digital customer acquisition services using a software-as-a-service delivery model through LifePRO and LISS platforms; subrogation services; and Subrosource software platform, an end-to-end subrogation platform. In addition, the company offers health care services related to care management, utilization management, disease management, payment integrity, revenue optimization, and customer engagement. Further, it provides financial planning and analysis, management reporting, forecasting and decision support, data management, regulatory reporting and risk, and compliance services; reservations, customer, and fulfilment services; freight billing, collections, claims management, freight audit, freight scheduling, supply chain management, and revenue assurance services; residential mortgage lending, title verification and validation, retail banking and credit cards, trust verification, commercial banking, and investment management; merchandising, pricing, and demand forecasting; and digital operations and solutions. The company offers predictive and prescriptive analytics in the areas of customer acquisition and lifecycle management. ExlService Holdings, Inc. was founded in 1999 and is headquartered in New York, New York.