Dynatrace (NYSE:DT – Get Free Report) and Atlassian (NASDAQ:TEAM – Get Free Report) are both large-cap technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.
Valuation and Earnings
This table compares Dynatrace and Atlassian”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dynatrace | $2.02 billion | 6.39 | $162.67 million | $0.54 | 83.22 |
| Atlassian | $6.57 billion | 5.78 | -$53.83 million | $0.36 | 416.76 |
Dynatrace has higher earnings, but lower revenue than Atlassian. Dynatrace is trading at a lower price-to-earnings ratio than Atlassian, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
94.3% of Dynatrace shares are held by institutional investors. Comparatively, 94.5% of Atlassian shares are held by institutional investors. 0.7% of Dynatrace shares are held by insiders. Comparatively, 37.6% of Atlassian shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Volatility and Risk
Dynatrace has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Atlassian has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.
Profitability
This table compares Dynatrace and Atlassian’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dynatrace | 7.42% | 12.73% | 7.17% |
| Atlassian | 1.28% | 33.53% | 6.35% |
Analyst Recommendations
This is a summary of current ratings for Dynatrace and Atlassian, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dynatrace | 0 | 8 | 24 | 0 | 2.75 |
| Atlassian | 1 | 3 | 24 | 0 | 2.82 |
Dynatrace currently has a consensus target price of $62.00, suggesting a potential upside of 37.96%. Atlassian has a consensus target price of $209.48, suggesting a potential upside of 39.62%. Given Atlassian’s stronger consensus rating and higher possible upside, analysts clearly believe Atlassian is more favorable than Dynatrace.
Summary
Atlassian beats Dynatrace on 8 of the 13 factors compared between the two stocks.
About Dynatrace
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.
About Atlassian
Atlassian Corporation develops collaboration and productivity software for software, IT and business teams. Its products help organizations plan and track work, manage software development and support services, and share information across teams. Its product portfolio includes Jira for project and issue tracking, Confluence for team documentation and collaboration, Jira Service Management for IT and other service teams, Trello for visual work management, and Bitbucket for code collaboration. Atlassian also offers cloud-based products and tools for distributed teams.
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