Contrasting Dynatrace (NYSE:DT) and Fujitsu (OTCMKTS:FJTSY)

Dynatrace (NYSE:DT) and Fujitsu (OTCMKTS:FJTSY) are both large-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.

Volatility & Risk

Dynatrace has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, Fujitsu has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dynatrace	$1.70 billion	6.57	$483.68 million	$0.61	61.38
Fujitsu	$23.31 billion	1.55	$1.45 billion	$0.45	45.74

Fujitsu has higher revenue and earnings than Dynatrace. Fujitsu 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 Fujitsu’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%
Fujitsu	N/A	N/A	N/A

Insider & Institutional Ownership

94.3% of Dynatrace shares are held by institutional investors. Comparatively, 0.1% of Fujitsu shares are held by institutional investors. 0.6% of Dynatrace shares are held 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 summary of recent ratings and target prices for Dynatrace and Fujitsu, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dynatrace	0	6	19	0	2.76
Fujitsu	0	2	0	0	2.00

Dynatrace presently has a consensus target price of $53.48, suggesting a potential upside of 42.83%. Given Dynatrace’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Dynatrace is more favorable than Fujitsu.

Summary

Dynatrace beats Fujitsu on 11 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 Fujitsu

Fujitsu Limited operates as an information and communication technology company in Japan and internationally. The company operates through three segments: Technology Solutions, Ubiquitous Solutions, and Device Solutions. The company offers multi cloud and hybrid IT services; assessment and consultative services; SAP landscape transformation services; new workplace; datacentre products comprising integrated systems, storage solutions, servers, network switches, and infrastructure management; workplace products including notebooks, tablet PC’s, desktop PC’s, workstations, thin clients, displays, and peripheral devices; consumption based IT services; installation and implementation services; and hardware, software, and infrastructure support services, as well as electronic devices, air conditioning products, and network solutions. It also provides cyber security solutions, including cyber security consulting, managed security servies, and security operation and advanced threat centers; internet of things, artificial intelligence platform and solutions; and software products comprising FUJITSU Software Infrastructure Manager and FUJITSU Software ServerView Suite. Further, the company offers electronic components, such as semiconductor packages and batteries. It serves automotive, manufacturing, retail, financial services, transport, telecommunications, healthcare, and energy and utilities industries; the public sectors; and services providers. The company was founded in 1923 and is headquartered in Tokyo, Japan.