Dynatrace vs SolarWinds Which Is More Lucrative?

Dynatrace and SolarWinds are two leading companies in the IT management and monitoring industry, each offering unique solutions and technologies to help businesses optimize their digital performance. Dynatrace's stock has shown strong growth in recent years, fueled by its innovative AI-driven platform and focus on cloud-native environments. On the other hand, SolarWinds has faced challenges due to cybersecurity breaches in 2020, impacting its stock performance. Investors are closely watching these two stocks to assess their potential for growth and resilience in the competitive market.

Dynatrace or SolarWinds?

When comparing Dynatrace and SolarWinds, 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 SolarWinds.

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 SolarWinds has a dividend yield of 5.45%. 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, SolarWinds reports a 5-year dividend growth of 0.00% year and a payout ratio of 150.27%.

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 34.77 and SolarWinds's P/E ratio at 28.04. 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 6.57 while SolarWinds's P/B ratio is 2.24.

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 2.11%, while SolarWinds's is -0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Dynatrace's ROE at 21.97% and SolarWinds's ROE at 8.36%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $54.76 for Dynatrace and $18.31 for SolarWinds. Over the past year, Dynatrace's prices ranged from $39.42 to $63.00, with a yearly change of 59.82%. SolarWinds's prices fluctuated between $10.14 and $18.55, with a yearly change of 82.94%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.