Contrasting Dynatrace (NYSE:DT) and Uber Technologies (NYSE:UBER)

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

Valuation and Earnings

This table compares Dynatrace and Uber Technologies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dynatrace $545.80 million 19.04 -$418.02 million ($0.53) -69.81
Uber Technologies $14.15 billion 4.27 -$8.51 billion ($6.81) -5.11

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

Profitability

This table compares Dynatrace and Uber Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dynatrace -76.59% -29.81% -7.05%
Uber Technologies -71.48% -58.70% -27.47%

Institutional and Insider Ownership

92.9% of Dynatrace shares are owned by institutional investors. Comparatively, 60.4% of Uber Technologies shares are owned by institutional investors. 8.7% of Uber Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Dynatrace and Uber Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dynatrace 0 4 14 0 2.78
Uber Technologies 0 5 38 0 2.88

Dynatrace currently has a consensus price target of $33.42, indicating a potential downside of 9.68%. Uber Technologies has a consensus price target of $43.79, indicating a potential upside of 25.74%. Given Uber Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe Uber Technologies is more favorable than Dynatrace.

Dynatrace Company Profile

Dynatrace, Inc. provides a software intelligence platform for the enterprise cloud applications. It offers Dynatrace, a platform for running an enterprise cloud. The company's products include AppMon, Classic Real User Monitoring, Network Application Monitoring, and Synthetic Classic. 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. is headquartered in Waltham, Massachusetts.

Uber Technologies Company Profile

Uber Technologies, Inc. develops and supports proprietary technology applications that enable independent providers of ridesharing, and meal preparation and delivery services to transact with end-users worldwide. The company operates in two segments, Core Platform and Other Bets. Its driver partners provide ridesharing services through a range of vehicles, such as cars, auto rickshaws, motorbikes, minibuses, or taxis, as well as based on the number of riders under the UberBLACK, UberX, UberPOOL, Express POOL, and Uber Bus names; and restaurant and delivery partners provide meal preparation and delivery services under the Uber Eats name. The company also offers Uber Central, a tool that enables companies to request, manage, and pay for rides for their employees, customers, or partners; and Uber Health, which allows healthcare professionals to arrange rides for patients going to and from the care destinations. In addition, it provides freight transportation services to shippers in the freight industry under the Uber Freight name; leases vehicles to third-parties that use the vehicles to provide ridesharing or eats services through the platforms; and provides access to rides through personal mobility products, including dockless e-bikes and e-scooters under the JUMP name. The company was formerly known as Ubercab, Inc. and changed its name to Uber Technologies, Inc. in February 2011. Uber Technologies, Inc. was founded in 2009 and is headquartered in San Francisco, California.

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