Critical Contrast: Pagaya Technologies (NASDAQ:PGY) and Dynatrace (NYSE:DT)

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

Volatility and Risk

Dynatrace has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, Pagaya Technologies has a beta of 5.5, suggesting that its share price is 450% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dynatrace	$2.02 billion	6.74	$162.67 million	$0.50	94.12
Pagaya Technologies	$1.33 billion	1.12	$81.39 million	$1.65	10.79

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

Profitability

This table compares Dynatrace and Pagaya Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dynatrace	7.22%	11.07%	7.02%
Pagaya Technologies	9.12%	51.56%	19.01%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Dynatrace and Pagaya Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dynatrace	0	8	24	0	2.75
Pagaya Technologies	0	2	8	2	3.00

Dynatrace presently has a consensus target price of $63.52, indicating a potential upside of 34.97%. Pagaya Technologies has a consensus target price of $31.62, indicating a potential upside of 77.67%. Given Pagaya Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Pagaya Technologies is more favorable than Dynatrace.

Institutional and Insider Ownership

94.3% of Dynatrace shares are owned by institutional investors. Comparatively, 57.1% of Pagaya Technologies shares are owned by institutional investors. 0.7% of Dynatrace shares are owned by company insiders. Comparatively, 42.0% of Pagaya Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Pagaya Technologies beats Dynatrace on 9 of the 15 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 Pagaya Technologies

Pagaya Technologies Ltd., a product-focused technology company, deploys data science and proprietary artificial intelligence-powered technology for financial institutions and investors in the United States, Israel, the Cayman Islands, and internationally. The company develops and implements proprietary artificial intelligence technology and related software solutions to assist partners to originate loans and other assets. Its partners include high-growth financial technology companies, incumbent banks and financial institutions, auto finance providers, and residential real estate service providers. Pagaya Technologies Ltd. was incorporated in 2016 and is headquartered in New York, New York.