Contrasting Unisys (NYSE:UIS) & Dynatrace (NYSE:DT)

Unisys (NYSE:UIS) and Dynatrace (NYSE:DT) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.

Risk & Volatility

Unisys has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, Dynatrace has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Unisys	-4.16%	-12.55%	1.56%
Dynatrace	27.75%	9.15%	6.00%

Insider and Institutional Ownership

86.9% of Unisys shares are held by institutional investors. Comparatively, 94.3% of Dynatrace shares are held by institutional investors. 7.0% of Unisys shares are held by company insiders. Comparatively, 0.6% of Dynatrace shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Unisys and Dynatrace”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Unisys	$1.96 billion	0.14	-$193.40 million	($1.18)	-3.25
Dynatrace	$1.70 billion	8.97	$483.68 million	$1.63	31.00

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

Analyst Recommendations

This is a breakdown of recent recommendations for Unisys and Dynatrace, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Unisys	0	1	1	0	2.50
Dynatrace	0	6	17	1	2.79

Unisys currently has a consensus price target of $7.75, suggesting a potential upside of 102.09%. Dynatrace has a consensus price target of $62.72, suggesting a potential upside of 24.11%. Given Unisys’ higher possible upside, equities analysts plainly believe Unisys is more favorable than Dynatrace.

Summary

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

About Unisys

Unisys Corporation, together with its subsidiaries, operates as an information technology solutions company in the United States and internationally. It operates in three segments: Digital Workplace Solutions (DWS); Cloud, Applications & Infrastructure Solutions (CA&I); and Enterprise Computing Solutions. The DWS segment provides advice and execution related to modern workplace solutions, such as communication and collaboration, intelligent workplace services, unified experience management, and modern device management; and traditional workplace solutions, including traditional service desk, device management and field services. The CA&I segment offers cloud management, hybrid infrastructure, modern applications, data and artificial intelligence, and cyber security; and design, implementation, monitoring, automation, and management of dedicated on-premises or hosted infrastructure. The Enterprise Computing Solutions segment provides license and support solutions; specialized services, next-generation computing, and industry solutions; and other solutions that provides various micro-market and business process solutions. The company also offers enterprise software and technology products, including Unisys InteliServe, PowerSuite, Unisys Logistics Optimization, CloudForte, ClearPath Forward, and Unisys Stealth. It serves its products in the travel and transportation, financial services, and healthcare industries. Unisys Corporation was founded in 1873 and is based in Blue Bell, Pennsylvania.

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.