Reviewing Dynatrace (NYSE:DT) & LM Funding America (NASDAQ:PWCM)

LM Funding America (NASDAQ:PWCM) and Dynatrace (NYSE:DT) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Profitability

This table compares LM Funding America and Dynatrace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LM Funding America	-413.92%	-132.69%	-78.02%
Dynatrace	7.42%	12.73%	7.17%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for LM Funding America and Dynatrace, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LM Funding America	1	0	0	0	1.00
Dynatrace	0	8	24	0	2.75

Dynatrace has a consensus target price of $62.00, indicating a potential upside of 40.03%. Given Dynatrace’s stronger consensus rating and higher possible upside, analysts clearly believe Dynatrace is more favorable than LM Funding America.

Earnings and Valuation

This table compares LM Funding America and Dynatrace”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LM Funding America	$8.85 million	0.10	-$26.92 million	($60.51)	-0.01
Dynatrace	$2.02 billion	6.34	$162.67 million	$0.50	88.55

Dynatrace has higher revenue and earnings than LM Funding America. LM Funding America is trading at a lower price-to-earnings ratio than Dynatrace, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

LM Funding America has a beta of 2.17, meaning that its share price is 117% more volatile than the S&P 500. Comparatively, Dynatrace has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Insider and Institutional Ownership

22.7% of LM Funding America shares are owned by institutional investors. Comparatively, 94.3% of Dynatrace shares are owned by institutional investors. 5.5% of LM Funding America shares are owned by company insiders. Comparatively, 0.7% of Dynatrace shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Dynatrace beats LM Funding America on 12 of the 14 factors compared between the two stocks.

About LM Funding America

LM Funding America, Inc. operates as a cryptocurrency mining and specialty finance company. It operates through two segments, Specialty Finance and Mining Operations. The company also engages in Bitcoin mining operations; and provides funding to nonprofit community associations. The company was founded in 2008 and is based in Tampa, Florida.

About Dynatrace

Dynatrace, Inc. provides a security platform for multicloud environments in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company 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, delivers software, and enhance user experiences. In addition, the company offers implementation, consulting, and training services. It 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, financial services, government, insurance, retail and wholesale, transportation, and software. Dynatrace, Inc. was founded in 2005 and is headquartered in Waltham, Massachusetts.