Dynatrace (NYSE:DT) vs. ZoomInfo Technologies (NASDAQ:ZI) Head-To-Head Contrast

Dynatrace (NYSE:DT) and ZoomInfo Technologies (NASDAQ:ZI) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Volatility and Risk

Dynatrace has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, ZoomInfo Technologies has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.

Institutional & Insider Ownership

94.3% of Dynatrace shares are owned by institutional investors. Comparatively, 95.5% of ZoomInfo Technologies shares are owned by institutional investors. 0.5% of Dynatrace shares are owned by insiders. Comparatively, 8.2% of ZoomInfo Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Dynatrace and ZoomInfo Technologies’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dynatrace	$1.16 billion	11.97	$107.96 million	$0.66	71.35
ZoomInfo Technologies	$1.24 billion	4.85	$107.30 million	$0.27	58.67

Dynatrace has higher earnings, but lower revenue than ZoomInfo Technologies. ZoomInfo Technologies is trading at a lower price-to-earnings ratio than Dynatrace, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Dynatrace and ZoomInfo Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dynatrace	0	4	17	0	2.81
ZoomInfo Technologies	2	6	13	0	2.52

Dynatrace currently has a consensus target price of $61.04, indicating a potential upside of 29.63%. ZoomInfo Technologies has a consensus target price of $21.58, indicating a potential upside of 36.21%. Given ZoomInfo Technologies’ higher probable upside, analysts clearly believe ZoomInfo Technologies is more favorable than Dynatrace.

Profitability

This table compares Dynatrace and ZoomInfo Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dynatrace	14.44%	11.92%	7.43%
ZoomInfo Technologies	8.66%	11.25%	3.59%

Summary

Dynatrace beats ZoomInfo Technologies on 9 of the 14 factors compared between the two stocks.

About Dynatrace

Dynatrace, Inc. provides a security platform for multicloud environments. It operates Dynatrace, a security platform, which provides application and microservices monitoring, runtime application security, infrastructure monitoring, log management and analytics, digital experience monitoring, digital business analytics, and cloud automation. Its platform allows its customers to modernize and automate IT operations, develop and release software, and enhance user experiences. The company also offers implementation, consulting, and training services. Dynatrace, Inc. markets its products through a combination of direct sales team and a network of partners, including resellers, system integrators, and managed service providers. It serves customers in various industries comprising banking, insurance, retail, manufacturing, travel, and software. The company operates in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. Dynatrace, Inc. was founded in 2005 and is headquartered in Waltham, Massachusetts.

About ZoomInfo Technologies

ZoomInfo Technologies Inc., together with its subsidiaries, provides go-to-market intelligence and engagement platform for sales and marketing teams in the United States and internationally. The company's cloud-based platform provides information on organizations and professionals to help users identify target customers and decision makers, obtain continually updated predictive lead and company scoring, monitor buying signals and other attributes of target companies, craft messages, engage through automated sales tools, and track progress through the deal cycle. It serves enterprises, mid-market companies, and down to small businesses that operate in various industry, including software, business services, manufacturing, telecommunications, financial services, media and internet, transportation, education, hospitality, and real estate. The company was founded in 2007 and is headquartered in Vancouver, Washington.