SolarWinds vs Dynatrace Which Is More Lucrative?

SolarWinds and Dynatrace are two prominent players in the IT management and monitoring industry. SolarWinds provides a wide range of network management tools, while Dynatrace offers advanced application performance monitoring solutions. Investors looking to capitalize on the growing demand for IT management software may want to consider these stocks for their portfolios. Both companies have shown strong growth potential, but their stocks have performed differently in recent years. This article will compare the performance of SolarWinds and Dynatrace stocks to help investors make informed decisions.

SolarWinds or Dynatrace?

When comparing SolarWinds 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 SolarWinds 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. SolarWinds has a dividend yield of 6.74%, while Dynatrace has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. SolarWinds reports a 5-year dividend growth of 0.00% year and a payout ratio of 435.01%. 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 SolarWinds P/E ratio at 65.25 and Dynatrace's P/E ratio at 103.01. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. SolarWinds P/B ratio is 1.85 while Dynatrace's P/B ratio is 7.84.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, SolarWinds has seen a 5-year revenue growth of -0.61%, while Dynatrace's is 1.79%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with SolarWinds's ROE at 2.87% and Dynatrace's ROE at 8.02%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $14.60 for SolarWinds and $56.37 for Dynatrace. Over the past year, SolarWinds's prices ranged from $10.14 to $14.93, with a yearly change of 47.24%. 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.