SolarWinds vs New Relic Which Performs Better?

SolarWinds and New Relic are two prominent companies operating in the tech industry, specifically focused on providing software solutions for monitoring and managing IT infrastructure. Both companies have seen significant growth in recent years, attracting the attention of investors looking to capitalize on the expanding market. SolarWinds, with its established presence in the industry, offers steady performance and potential for long-term growth, while New Relic, with its innovative approach and cutting-edge technology, presents a more dynamic investment opportunity. In this analysis, we will compare the stocks of these two companies to determine which one presents a more promising investment opportunity.

SolarWinds or New Relic?

When comparing SolarWinds 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 SolarWinds 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. SolarWinds has a dividend yield of 6.94%, while New Relic has a dividend yield of 0%. 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, 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 SolarWinds P/E ratio at 63.36 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. SolarWinds P/B ratio is 1.80 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, SolarWinds has seen a 5-year revenue growth of -0.61%, while New Relic's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with SolarWinds's ROE at 2.87% 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 $14.23 for SolarWinds and $0.00 for New Relic. Over the past year, SolarWinds's prices ranged from $10.14 to $14.71, with a yearly change of 45.07%. 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.