Dynatrace (NYSE:DT) vs. Pegasystems (NASDAQ:PEGA) Head to Head Review

Pegasystems (NASDAQ:PEGA) and Dynatrace (NYSE:DT) are both technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pegasystems	$1.75 billion	2.94	$393.44 million	$1.61	19.50
Dynatrace	$2.02 billion	6.30	$162.67 million	$0.54	82.06

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

Insider & Institutional Ownership

46.9% of Pegasystems shares are held by institutional investors. Comparatively, 94.3% of Dynatrace shares are held by institutional investors. 48.4% of Pegasystems shares are held by company insiders. Comparatively, 0.7% of Dynatrace shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Pegasystems and Dynatrace, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pegasystems	2	7	6	0	2.27
Dynatrace	0	8	24	0	2.75

Pegasystems presently has a consensus target price of $45.73, suggesting a potential upside of 45.67%. Dynatrace has a consensus target price of $62.00, suggesting a potential upside of 39.92%. Given Pegasystems’ higher probable upside, equities research analysts clearly believe Pegasystems is more favorable than Dynatrace.

Volatility & Risk

Pegasystems has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Dynatrace has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pegasystems	16.86%	35.22%	15.55%
Dynatrace	7.42%	12.73%	7.17%

Summary

Pegasystems beats Dynatrace on 8 of the 14 factors compared between the two stocks.

About Pegasystems

Pegasystems Inc. develops enterprise software that helps organizations automate business processes and manage customer interactions. Its offerings are used to design and coordinate workflows across areas such as customer service, sales, operations and compliance. The company’s Pega Infinity platform includes low-code application development, workflow automation, customer relationship management and artificial intelligence capabilities. These tools help businesses build and update applications and connect processes across their operations.

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.