Analyzing C3.ai (NYSE:AI) & Dynatrace (NYSE:DT)

C3.ai (NYSE:AI) and Dynatrace (NYSE:DT) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitability, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings for C3.ai and Dynatrace, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
C3.ai	5	8	2	1	1.94
Dynatrace	0	6	16	1	2.78

C3.ai presently has a consensus target price of $27.4286, indicating a potential upside of 62.77%. Dynatrace has a consensus target price of $62.6250, indicating a potential upside of 28.26%. Given C3.ai’s higher possible upside, equities research analysts plainly believe C3.ai is more favorable than Dynatrace.

Profitability

This table compares C3.ai and Dynatrace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
C3.ai	-74.21%	-33.51%	-27.48%
Dynatrace	27.75%	9.15%	6.00%

Earnings & Valuation

This table compares C3.ai and Dynatrace”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
C3.ai	$389.06 million	5.82	-$288.70 million	($2.24)	-7.52
Dynatrace	$1.70 billion	8.67	$483.68 million	$1.63	29.95

Dynatrace has higher revenue and earnings than C3.ai. C3.ai is trading at a lower price-to-earnings ratio than Dynatrace, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

39.0% of C3.ai shares are owned by institutional investors. Comparatively, 94.3% of Dynatrace shares are owned by institutional investors. 33.5% of C3.ai shares are owned by insiders. Comparatively, 0.6% of Dynatrace shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

C3.ai has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500. Comparatively, Dynatrace has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Summary

Dynatrace beats C3.ai on 11 of the 14 factors compared between the two stocks.

About C3.ai

C3.ai, Inc. operates as an enterprise artificial intelligence (AI) software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company provides C3 AI platform, an application development and runtime environment that enables customers to design, develop, and deploy enterprise AI applications; C3 AI Ex Machina for analysis-ready data; C3 AI CRM, an industry specific customer relationship management solution; and C3 Generative AI Product Suite that enables to locate, retrieve, and present information. It also offers C3 AI applications, including C3 AI Inventory Optimization, a solution to optimize raw material, in-process, and finished goods inventory levels; C3 AI Supply Network Risk, which identifies emerging inbound and outbound risks across the network; C3 AI Sustainability Suite, which helps to decrease greenhouse gas emission; C3 AI Production Schedule Optimization, a solution for scheduling production; C3 AI Financial Services Suite, which helps to minimize compliance risks; and C3 AI Energy Management solution. In addition, it offers integrated turnkey enterprise AI applications for oil and gas, chemicals, utilities, manufacturing, financial services, defense, intelligence, aerospace, healthcare, and telecommunications market. It has strategic partnerships with Baker Hughes in the areas of oil and gas market; Booz Allen to provide solutions to government, defense, and intelligence sectors; Raytheon; and AWS, Google, and Microsoft. The company was formerly known as C3 IoT, Inc. and changed its name to C3.ai, Inc. in June 2019. C3.ai, Inc. was incorporated in 2009 and is headquartered in Redwood City, California.

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.