Comparing Dynatrace (NYSE:DT) & Atlassian (NASDAQ:TEAM)

Dynatrace (NYSE:DT) and Atlassian (NASDAQ:TEAM) are both large-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Volatility and Risk

Dynatrace has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Atlassian has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.

Valuation and Earnings

This table compares Dynatrace and Atlassian”s 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.

Analyst Ratings

This is a breakdown of current recommendations and price targets 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 probable upside, analysts clearly believe Atlassian is more favorable than Dynatrace.

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%

Insider and Institutional Ownership

94.3% of Dynatrace shares are owned by institutional investors. Comparatively, 94.5% of Atlassian shares are owned by institutional investors. 0.7% of Dynatrace shares are owned by insiders. Comparatively, 37.6% of Atlassian shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

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.