Dynatrace (NYSE:DT) vs. Hello Group (NASDAQ:MOMO) Financial Comparison

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Hello Group and Dynatrace, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hello Group	0	2	3	0	2.60
Dynatrace	0	7	16	0	2.70

Hello Group presently has a consensus price target of $13.30, suggesting a potential upside of 86.01%. Dynatrace has a consensus price target of $53.61, suggesting a potential upside of 14.27%. Given Hello Group’s higher possible upside, analysts clearly believe Hello Group is more favorable than Dynatrace.

Earnings & Valuation

This table compares Hello Group and Dynatrace’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hello Group	$1.84 billion	0.74	$215.20 million	$1.28	5.59
Dynatrace	$1.16 billion	11.88	$107.96 million	$0.49	95.74

Hello Group has higher revenue and earnings than Dynatrace. Hello Group 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 Hello Group and Dynatrace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hello Group	14.53%	16.70%	11.39%
Dynatrace	11.77%	11.81%	7.07%

Insider and Institutional Ownership

53.9% of Hello Group shares are owned by institutional investors. Comparatively, 94.3% of Dynatrace shares are owned by institutional investors. 61.4% of Hello Group shares are owned by company insiders. Comparatively, 0.5% of Dynatrace shares are owned by company 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.

Risk & Volatility

Hello Group has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, Dynatrace has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.

Summary

Hello Group beats Dynatrace on 8 of the 14 factors compared between the two stocks.

About Hello Group

Hello Group Inc. provides mobile-based social and entertainment services in the People's Republic of China. The company offers Momo, a mobile application that connects people and facilitates social interactions based on location, interests, and various online recreational activities including, live talent shows, short videos, social games, as well as other video- and audio-based interactive experiences, such as online parties, mobile karaoke and user participated reality shows; Tantan, a social and dating application; and other applications under the Hertz, Soulchill, Duidui, and Tietie names. The company also provides livestream services for various content and activities comprising talent shows, such as singing, dancing, and talk shows, as well as casual chatting, and other forms of interactions between broadcasters and viewers to its platform's users; value-added services; advertising and marketing services; and mobile games. The company was formerly known as Momo Inc. and changed its name to Hello Group Inc. in August 2021. Hello Group Inc. was incorporated in 2011 and is headquartered in Beijing, the People's Republic of China.

About Dynatrace

Dynatrace, Inc. provides a security platform for multicloud environments. It 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, develop and release software, and enhance user experiences. The company also offers implementation, consulting, and training services. Dynatrace, Inc. 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, insurance, retail, manufacturing, travel, and software. The company operates in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. Dynatrace, Inc. was founded in 2005 and is headquartered in Waltham, Massachusetts.