Yext (NYSE:YEXT) vs. Dynatrace (NYSE:DT) Financial Review

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

Volatility and Risk

Yext has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Dynatrace has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Yext and Dynatrace, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yext	1	5	0	0	1.83
Dynatrace	0	7	23	0	2.77

Yext currently has a consensus price target of $6.33, indicating a potential upside of 2.07%. Dynatrace has a consensus price target of $54.81, indicating a potential upside of 6.93%. Given Dynatrace’s stronger consensus rating and higher probable upside, analysts clearly believe Dynatrace is more favorable than Yext.

Valuation & Earnings

This table compares Yext and Dynatrace”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yext	$446.58 million	1.38	$37.87 million	$0.17	36.50
Dynatrace	$2.02 billion	7.34	$162.67 million	$0.50	102.52

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

Insider and Institutional Ownership

71.0% of Yext shares are owned by institutional investors. Comparatively, 94.3% of Dynatrace shares are owned by institutional investors. 7.8% of Yext shares are owned by company insiders. Comparatively, 0.7% of Dynatrace shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Yext	5.90%	43.23%	7.50%
Dynatrace	7.22%	11.07%	7.02%

Summary

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

About Yext

Yext, Inc. organizes business facts to provide answers to consumer questions in North America and internationally. It operates Yext platform, a cloud-based platform that allows its customers to offer answers to consumer questions, to control the facts about their businesses and the content of their landing pages, and to manage their consumer reviews; and provides customers to update their information and content through its publisher network of maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories, and social networks, as well as professional services. The company’s platform also enables its customers to centralize, control and manage data fields, including store information comprising name, address, phone number, and holiday hours; professional information, such as headshot, specialties, and education; job information consists of title and description; FAQs and other information. It serves various industries, such as healthcare, hospitality, food services, retail, and financial services. Yext, Inc. was incorporated in 2006 and is headquartered in New York, New York.

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.