Dynatrace vs New Relic Which Outperforms?

Dynatrace and New Relic are two leading companies in the application performance monitoring industry, providing cloud-based software solutions for businesses to monitor and optimize their applications. Both companies have experienced significant growth in recent years, attracting the interest of investors seeking to capitalize on the increasing demand for digital monitoring tools. While Dynatrace boasts a strong market presence and financial performance, New Relic has been pivoting its strategy to focus on cloud-native application monitoring. Investors are closely monitoring the performance of both stocks to make informed decisions on their investment strategies.

Dynatrace or New Relic?

When comparing Dynatrace and New Relic, 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 New Relic.

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 New Relic has a dividend yield of 0%. 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, New Relic 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 Dynatrace P/E ratio at 104.84 and New Relic's P/E ratio at 0.00. 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 7.98 while New Relic's P/B ratio is 0.00.

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 New Relic's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Dynatrace's ROE at 8.02% and New Relic's ROE at 0.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $57.37 for Dynatrace and $0.00 for New Relic. Over the past year, Dynatrace's prices ranged from $39.42 to $61.41, with a yearly change of 55.78%. New Relic's prices fluctuated between $0.00 and $86.96, with a yearly change of 0.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.