Taboola.com (NASDAQ:TBLA – Get Free Report) and Dynatrace (NYSE:DT – Get Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.
Analyst Recommendations
This is a summary of current ratings for Taboola.com and Dynatrace, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Taboola.com | 0 | 4 | 4 | 0 | 2.50 |
| Dynatrace | 0 | 6 | 18 | 0 | 2.75 |
Taboola.com presently has a consensus target price of $4.75, suggesting a potential upside of 18.75%. Dynatrace has a consensus target price of $59.41, suggesting a potential upside of 56.01%. Given Dynatrace’s stronger consensus rating and higher possible upside, analysts plainly believe Dynatrace is more favorable than Taboola.com.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Taboola.com | $1.88 billion | 0.61 | -$3.76 million | $0.08 | 50.00 |
| Dynatrace | $1.70 billion | 6.76 | $483.68 million | $1.67 | 22.80 |
Dynatrace has lower revenue, but higher earnings than Taboola.com. Dynatrace is trading at a lower price-to-earnings ratio than Taboola.com, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
42.9% of Taboola.com shares are owned by institutional investors. Comparatively, 94.3% of Dynatrace shares are owned by institutional investors. 24.7% of Taboola.com shares are owned by insiders. Comparatively, 0.6% of Dynatrace shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
Taboola.com has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Dynatrace has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.
Profitability
This table compares Taboola.com and Dynatrace’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Taboola.com | 1.34% | 8.12% | 4.92% |
| Dynatrace | 27.33% | 9.24% | 6.14% |
Summary
Dynatrace beats Taboola.com on 10 of the 14 factors compared between the two stocks.
About Taboola.com
Taboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United States, the United Kingdom, Germany, and internationally. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web to users. The company 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.
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