New Relic vs Dynatrace

New Relic and Dynatrace are two prominent players in the application performance monitoring industry, providing essential tools for businesses to monitor and optimize their digital operations. Investors looking to capitalize on the growing demand for these services may want to compare the stocks of these two companies. New Relic (NYSE: NEWR) and Dynatrace (NYSE: DT) have been volatile in recent months, with both facing challenges and opportunities in the competitive market. Understanding the strengths and weaknesses of each company can help investors make informed decisions about which stock to invest in.

New Relic or Dynatrace?

When comparing New Relic 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 New Relic 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. New Relic has a dividend yield of 0%, while Dynatrace has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. New Relic reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 New Relic P/E ratio at 0.00 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. New Relic P/B ratio is 0.00 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, New Relic has seen a 5-year revenue growth of 0.00%, while Dynatrace's is 1.79%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with New Relic's ROE at 0.00% and Dynatrace's ROE at 7.95%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.00 for New Relic and $53.55 for Dynatrace. Over the past year, New Relic's prices ranged from $0.00 to $86.96, with a yearly change of 0.00%. 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.