We have a positive outlook on Dynatrace’s prospects in the observability space. The firm’s products benefit from secular tailwinds driving an accelerating increase in data for enterprises to monitor and analyze. In our opinion, the firm’s sticky product portfolio, broad swath of products that cover the entire IT stack, and increased penetration in its target market have enabled Dynatrace to form a narrow economic moat around its business.
Dynatrace has strong secular tailwinds as the FSMA market is expected to grow rapidly.
Dynatrace competes in a tough space, with companies such as Splunk and Datadog offering competing platforms that have similar features.
|
Metric
|
DT
|
ESTC
|
DDOG
|
|---|---|---|---|
Price/Earnings (Normalized) | 42.06 | 59.92 | 61.08 |
Price/Book Value | 7.64 | 10.46 | 15.98 |
Price/Sales | 10.64 | 6.15 | 17.57 |
Price/Cash Flow | 41.23 | 38.84 | 54.79 |
|
Metric
|
DT
|
ESTC
|
DDOG
|
|---|---|---|---|
Quick Ratio | 1.20 | 1.75 | 1.95 |
Current Ratio | 1.36 | 1.91 | 2.01 |
Interest Coverage | — | −3.43 | 8.68 |
|
Metric
|
DT
|
ESTC
|
DDOG
|
|---|---|---|---|
Return on Assets (Normalized) | 12.45% | 6.82% | 16.15% |
Return on Equity (Normalized) | 19.89% | 22.02% | 30.95% |
Return on Invested Capital (Normalized) | 17.10% | 12.82% | 17.19% |
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1-Day Chart
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Morningstar Rating for Stocks
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United States