Critical Contrast: Dynatrace (NYSE:DT) versus Figma (NYSE:FIG)

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

Volatility & Risk

Figma has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Dynatrace has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Figma and Dynatrace, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Figma	1	11	4	0	2.19
Dynatrace	0	8	24	0	2.75

Figma presently has a consensus price target of $28.80, indicating a potential upside of 52.51%. Dynatrace has a consensus price target of $62.00, indicating a potential upside of 38.16%. Given Figma’s higher probable upside, equities analysts clearly believe Figma is more favorable than Dynatrace.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Figma	-40.21%	-32.80%	-20.72%
Dynatrace	7.42%	12.73%	7.17%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Figma	$1.06 billion	8.19	-$1.25 billion	($1.07)	-17.65
Dynatrace	$2.02 billion	6.38	$162.67 million	$0.54	83.10

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

Institutional and Insider Ownership

94.3% of Dynatrace shares are held by institutional investors. 32.3% of Figma shares are held by insiders. Comparatively, 0.7% of Dynatrace shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Dynatrace beats Figma on 9 of the 13 factors compared between the two stocks.

About Figma

Figma, Inc. develops browser-based software for designing and building digital products. Its platform supports collaborative interface design, interactive prototyping and workflows that help teams plan, create and refine websites, apps and other digital experiences. Figma’s products include Figma Design for interface design and prototyping, FigJam for online whiteboarding and brainstorming, and Dev Mode, which helps developers inspect designs and access implementation details. Figma Slides provides tools for creating and presenting slide decks.

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.