Dynatrace vs Cisco Systems Which Is a Better Investment?

Dynatrace and Cisco Systems are two prominent companies in the technology sector with distinct business models and market positions. Dynatrace specializes in application performance monitoring and management, while Cisco Systems is a multinational technology conglomerate known for its networking hardware and software solutions. Investors focusing on growth potential and innovation may find Dynatrace more appealing, while those seeking stability and dividends may prefer Cisco Systems. Both stocks have shown resilience in the market, making them worthy considerations for investors seeking exposure to the technology sector.

Dynatrace or Cisco Systems?

When comparing Dynatrace and Cisco Systems, 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 Dynatrace and Cisco Systems.

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. Dynatrace has a dividend yield of -%, while Cisco Systems has a dividend yield of 2.71%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Dynatrace reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Cisco Systems reports a 5-year dividend growth of 3.90% year and a payout ratio of 68.09%.

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 Dynatrace P/E ratio at 99.34 and Cisco Systems's P/E ratio at 24.90. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Dynatrace P/B ratio is 7.56 while Cisco Systems's P/B ratio is 5.17.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Dynatrace has seen a 5-year revenue growth of 1.79%, while Cisco Systems's is 0.37%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Dynatrace's ROE at 8.02% and Cisco Systems's ROE at 20.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $54.26 for Dynatrace and $58.38 for Cisco Systems. Over the past year, Dynatrace's prices ranged from $39.42 to $61.41, with a yearly change of 55.78%. Cisco Systems's prices fluctuated between $44.50 and $60.23, with a yearly change of 35.35%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.