Dynatrace (NYSE:DT) versus Vertiv (NYSE:VRT) Critical Contrast

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

Profitability

This table compares Vertiv and Dynatrace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vertiv	10.67%	50.82%	14.98%
Dynatrace	27.33%	9.24%	6.14%

Risk & Volatility

Vertiv has a beta of 2.03, suggesting that its stock price is 103% more volatile than the S&P 500. Comparatively, Dynatrace has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Insider & Institutional Ownership

89.9% of Vertiv shares are held by institutional investors. Comparatively, 94.3% of Dynatrace shares are held by institutional investors. 2.6% of Vertiv shares are held by company insiders. Comparatively, 0.6% of Dynatrace shares are held 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.

Earnings & Valuation

This table compares Vertiv and Dynatrace”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vertiv	$9.70 billion	6.61	$495.80 million	$2.65	63.21
Dynatrace	$1.85 billion	7.21	$483.68 million	$1.67	26.53

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

Analyst Recommendations

This is a breakdown of current recommendations for Vertiv and Dynatrace, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vertiv	1	6	20	2	2.79
Dynatrace	0	6	17	1	2.79

Vertiv presently has a consensus price target of $180.48, suggesting a potential upside of 7.74%. Dynatrace has a consensus price target of $61.59, suggesting a potential upside of 39.02%. Given Dynatrace’s higher possible upside, analysts clearly believe Dynatrace is more favorable than Vertiv.

Summary

Vertiv beats Dynatrace on 11 of the 15 factors compared between the two stocks.

About Vertiv

Vertiv Holdings Co, together with its subsidiaries, designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It offers AC and DC power management products, switchgear and busbar products, thermal management products, integrated rack systems, modular solutions, and management systems for monitoring and controlling digital infrastructure that are integral to the technologies used for various services, including e-commerce, online banking, file sharing, video on-demand, energy storage, wireless communications, Internet of Things, and online gaming. The company also provides lifecycle management services, predictive analytics, and professional services for deploying, maintaining, and optimizing its products and their related systems; and preventative maintenance, acceptance testing, engineering and consulting, performance assessments, remote monitoring, training, spare parts, and digital critical infrastructure software services. It offers its products primarily under the Vertiv, Liebert, NetSure, Geist, E&I, Powerbar, and Avocent brands. The company serves cloud services, financial services, healthcare, transportation, manufacturing, energy, education, government, social media, and retail industries through a network of direct sales professionals, independent sales representatives, channel partners, and original equipment manufacturers. Vertiv Holdings Co is headquartered in Westerville, Ohio.

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.