Cisco Systems vs Dynatrace

Cisco Systems and Dynatrace are two leading companies in the technology sector that provide solutions for businesses looking to optimize their digital operations. Cisco Systems, a multinational corporation, specializes in networking hardware, software, and telecommunications equipment. On the other hand, Dynatrace focuses on software intelligence to simplify complexity and accelerate innovation. Both companies have experienced growth in recent years, but investors may be interested in comparing their stock performance and potential for future growth.

Cisco Systems or Dynatrace?

When comparing Cisco Systems and Dynatrace, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Cisco Systems and Dynatrace.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Cisco Systems has a dividend yield of 2.94%, while Dynatrace has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Cisco Systems reports a 5-year dividend growth of 3.90% year and a payout ratio of 61.86%. On the other hand, Dynatrace reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Cisco Systems P/E ratio at 21.06 and Dynatrace's P/E ratio at 102.94. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Cisco Systems P/B ratio is 4.78 while Dynatrace's P/B ratio is 7.72.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Cisco Systems has seen a 5-year revenue growth of 0.37%, while Dynatrace's is 1.79%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cisco Systems's ROE at 22.60% and Dynatrace's ROE at 7.95%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $53.92 for Cisco Systems and $53.55 for Dynatrace. Over the past year, Cisco Systems's prices ranged from $44.50 to $54.61, with a yearly change of 22.71%. Dynatrace's prices fluctuated between $39.42 and $61.41, with a yearly change of 55.78%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.