Contrasting SailPoint Technologies (NYSE:SAIL) and Dynatrace (NYSE:DT)

SailPoint Technologies (NYSE:SAIL) and Dynatrace (NYSE:DT) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, earnings, profitability and valuation.

Risk & Volatility

SailPoint Technologies has a beta of 1.88, indicating that its stock price is 88% more volatile than the S&P 500. Comparatively, Dynatrace has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500.

Earnings & Valuation

This table compares SailPoint Technologies and Dynatrace’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SailPoint Technologies $365.25 million 11.76 -$10.76 million $0.18 258.50
Dynatrace $703.51 million 21.88 $75.71 million $0.43 126.67

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

Profitability

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

Net Margins Return on Equity Return on Assets
SailPoint Technologies -4.63% 0.98% 0.42%
Dynatrace 10.76% 12.89% 6.33%

Insider & Institutional Ownership

93.2% of Dynatrace shares are held by institutional investors. 2.4% of SailPoint Technologies shares are held by company insiders. Comparatively, 1.5% of Dynatrace shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for SailPoint Technologies and Dynatrace, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SailPoint Technologies 0 1 13 0 2.93
Dynatrace 0 2 20 0 2.91

SailPoint Technologies currently has a consensus target price of $58.64, suggesting a potential upside of 26.03%. Dynatrace has a consensus target price of $57.50, suggesting a potential upside of 5.56%. Given SailPoint Technologies’ stronger consensus rating and higher possible upside, research analysts clearly believe SailPoint Technologies is more favorable than Dynatrace.

Summary

Dynatrace beats SailPoint Technologies on 10 of the 14 factors compared between the two stocks.

About SailPoint Technologies

SailPoint Technologies Holdings, Inc. provides enterprise identity security solutions in the United States, Europe, the Middle East, Africa, and internationally. The company offers software and software as a service (SaaS) solutions, which help organizations to govern the digital identities of employees, contractors, business partners, software bots, and other human and non-human users, as well as manage their constantly changing access rights to enterprise applications and data across hybrid IT environments, spanning on-premises, cloud and mobile applications, and file storage platforms. Its solutions include IdentityNow, a cloud-based multi-tenant identity security platform; IdentityIQ, an on-premises identity security solution; and SailPoint Identity Services, a multi-tenant SaaS subscription service. The company sells its products and solutions to commercial enterprises, financial institutions, and governments directly, as well as through system integrators, technology partners, and value-added resellers. SailPoint Technologies Holdings, Inc. was founded in 2004 and is headquartered in Austin, Texas.

About Dynatrace

Dynatrace, Inc. provides a software intelligence platform for the enterprise cloud applications. It operates Dynatrace, a platform for running and optimizing multi-cloud environments. Its products include AppMon that works in various application environments, such as mobile apps, web apps, web browsers, web servers, Java, .NET, Node.js, PHP, databases, middleware, and mainframe; and Classic Real User Monitoring, which tracks user's experience from an edge devices comprising smart phones, tablets, PCs, or kiosk through cloud services, as well as customer's web tiers. The company also provides Synthetic Classic, which offers customer experience, as well as is used to monitor application and application program interface availability and performance; and Network Application Monitoring that provides enterprise applications, network services, user experience, and application delivery across wide-area networks. 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. It has a strategic collaboration with Dynatrace, Inc. Dynatrace, Inc. is headquartered in Waltham, Massachusetts.

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