Analyzing Dynatrace (DT) and Its Rivals

Dynatrace (NYSE:DT) is one of 959 public companies in the “Software” industry, but how does it contrast to its peers? We will compare Dynatrace to similar businesses based on the strength of its valuation, dividends, institutional ownership, earnings, risk, profitability and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and target prices for Dynatrace and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dynatrace	0	8	24	0	2.75
Dynatrace Competitors	5835	21614	45010	1500	2.57

Dynatrace presently has a consensus price target of $62.00, suggesting a potential upside of 38.16%. As a group, “Software” companies have a potential upside of 28.24%. Given Dynatrace’s stronger consensus rating and higher probable upside, research analysts clearly believe Dynatrace is more favorable than its peers.

Institutional and Insider Ownership

94.3% of Dynatrace shares are held by institutional investors. Comparatively, 41.5% of shares of all “Software” companies are held by institutional investors. 0.7% of Dynatrace shares are held by company insiders. Comparatively, 19.9% of shares of all “Software” companies are held 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.

Valuation & Earnings

This table compares Dynatrace and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Dynatrace	$2.02 billion	$162.67 million	83.10
Dynatrace Competitors	$1.79 billion	$382.68 million	112.23

Dynatrace has higher revenue, but lower earnings than its peers. Dynatrace is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Dynatrace has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Dynatrace’s peers have a beta of 1.35, suggesting that their average share price is 35% more volatile than the S&P 500.

Profitability

This table compares Dynatrace and its peers’ 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	-599.60%	26.31%	-8.93%

Summary

Dynatrace beats its peers on 7 of the 13 factors compared.

Dynatrace Company Profile

Dynatrace, Inc. provides a software intelligence platform for monitoring and managing complex digital environments. Its platform helps organizations observe applications, infrastructure, cloud services and user experiences, and analyze performance and operational data. The company’s offerings include application and infrastructure monitoring, log management, digital experience monitoring, application security and business analytics. Dynatrace also incorporates artificial intelligence and automation to help identify the causes of problems and support responses to them.