Contrasting Dynatrace (DT) and Its Competitors

Dynatrace (NYSE:DT) is one of 953 public companies in the “Software” industry, but how does it compare to its competitors? We will compare Dynatrace to related companies based on the strength of its risk, profitability, dividends, valuation, earnings, institutional ownership and analyst recommendations.

Insider and Institutional 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Dynatrace and its competitors, as provided by MarketBeat.

	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, suggesting 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 probable upside, research analysts clearly believe Dynatrace is more favorable than its competitors.

Volatility & Risk

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

Profitability

This table compares Dynatrace and its competitors’ 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 competitors gross revenue, earnings per share 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 competitors. Dynatrace is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Dynatrace beats its competitors 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.