Contrasting Dynatrace (NYSE:DT) & Wix.com (NASDAQ:WIX)

Dynatrace (NYSE:DTGet Free Report) and Wix.com (NASDAQ:WIXGet Free Report) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Dynatrace 27.75% 9.15% 6.00%
Wix.com 8.90% -136.43% 10.36%

Analyst Ratings

This is a summary of recent ratings and price targets for Dynatrace and Wix.com, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dynatrace 0 6 16 1 2.78
Wix.com 0 3 17 3 3.00

Dynatrace currently has a consensus target price of $63.09, indicating a potential upside of 24.75%. Wix.com has a consensus target price of $215.37, indicating a potential upside of 47.98%. Given Wix.com’s stronger consensus rating and higher probable upside, analysts clearly believe Wix.com is more favorable than Dynatrace.

Volatility & Risk

Dynatrace has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Wix.com has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.

Institutional and Insider Ownership

94.3% of Dynatrace shares are held by institutional investors. Comparatively, 81.5% of Wix.com shares are held by institutional investors. 0.6% of Dynatrace shares are held by insiders. Comparatively, 6.2% of Wix.com shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Dynatrace and Wix.com”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dynatrace $1.70 billion 8.98 $483.68 million $1.63 31.03
Wix.com $1.87 billion 4.37 $138.32 million $2.81 51.79

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

Summary

Wix.com beats Dynatrace on 10 of the 15 factors compared between the two stocks.

About Dynatrace

(Get Free Report)

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.

About Wix.com

(Get Free Report)

Wix.com Ltd., together with its subsidiaries, operates as a cloud-based web development platform for registered users and creators worldwide. The company offers Wix Editor, a drag-and-drop visual development and website editing environment platform; and Wix ADI that enables users to have the freedom of customization that the classic editor offers. It also provides Wix Logo Maker that generates a logo, including through the use of artificial intelligence; Wix Answers to support users; and Payments by Wix, a payment platform, which helps its users receive payments from their customers through their Wix Website. In addition, the company offers various vertical-specific applications that business owners use to operate various aspects of their business online. Further, it provides a range of complementary services, including Wix App Market, a marketplace that offers its registered users various free and paid web applications for building, growing, and managing their businesses; Wix marketplace that brings users seeking help in creating and managing a website together with Web experts; and Wix owner App, a native mobile application, which enables users to manage their Websites and Wix operating systems. The company was formerly known as Wixpress Ltd. The company was incorporated in 2006 and is headquartered in Tel Aviv, Israel.

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