Elastic vs New Relic Which Outperforms?

Elastic and New Relic are two prominent players in the competitive field of monitoring and observability software solutions for businesses. Elastic, known for its Elasticsearch and Kibana tools, offers open-source software for search, logging, and analytics, while New Relic provides a cloud-based platform for application performance monitoring. Both companies have experienced growth in recent years, but face challenges in a rapidly evolving market. Investors interested in the tech sector may want to consider the contrasting potential of Elastic and New Relic stocks for their investment portfolios.

Elastic or New Relic?

When comparing Elastic 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 Elastic 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. Elastic 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. Elastic 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 Elastic P/E ratio at 189.86 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. Elastic P/B ratio is 14.12 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, Elastic has seen a 5-year revenue growth of 3.32%, while New Relic's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Elastic's ROE at 8.00% 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 $110.91 for Elastic and $0.00 for New Relic. Over the past year, Elastic's prices ranged from $69.00 to $136.06, with a yearly change of 97.19%. 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.