Head to Head Review: Dynatrace (NYSE:DT) & Taboola.com (NASDAQ:TBLA)

Dynatrace (NYSE:DT) and Taboola.com (NASDAQ:TBLA) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dynatrace	27.33%	9.24%	6.14%
Taboola.com	1.34%	8.12%	4.92%

Risk and Volatility

Dynatrace has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Taboola.com has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500.

Institutional and Insider Ownership

94.3% of Dynatrace shares are owned by institutional investors. Comparatively, 42.9% of Taboola.com shares are owned by institutional investors. 0.6% of Dynatrace shares are owned by insiders. Comparatively, 24.7% of Taboola.com shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Dynatrace and Taboola.com, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dynatrace	0	6	18	0	2.75
Taboola.com	0	4	4	0	2.50

Dynatrace presently has a consensus target price of $58.95, indicating a potential upside of 76.08%. Taboola.com has a consensus target price of $4.75, indicating a potential upside of 30.85%. Given Dynatrace’s stronger consensus rating and higher possible upside, analysts plainly believe Dynatrace is more favorable than Taboola.com.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dynatrace	$1.70 billion	5.94	$483.68 million	$1.67	20.05
Taboola.com	$1.77 billion	0.59	-$3.76 million	$0.08	45.38

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

Summary

Dynatrace beats Taboola.com on 10 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 Taboola.com

Taboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United States, the United Kingdom, Germany, and internationally. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web to users. The company was incorporated in 2006 and is headquartered in New York, New York.