Science Applications International (NASDAQ:SAIC) & Dynatrace (NYSE:DT) Head to Head Analysis

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

Valuation & Earnings

This table compares Science Applications International and Dynatrace”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Science Applications International	$7.48 billion	0.63	$362.00 million	$8.26	12.48
Dynatrace	$1.70 billion	8.47	$483.68 million	$1.63	29.27

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

Volatility and Risk

Science Applications International has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, Dynatrace has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Science Applications International and Dynatrace, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Science Applications International	0	0	0	0	0.00
Dynatrace	0	6	17	1	2.79

Dynatrace has a consensus target price of $62.72, suggesting a potential upside of 31.48%. Given Dynatrace’s stronger consensus rating and higher probable upside, analysts plainly believe Dynatrace is more favorable than Science Applications International.

Profitability

This table compares Science Applications International and Dynatrace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Science Applications International	5.35%	33.36%	9.90%
Dynatrace	27.75%	9.15%	6.00%

Institutional and Insider Ownership

76.0% of Science Applications International shares are owned by institutional investors. Comparatively, 94.3% of Dynatrace shares are owned by institutional investors. 0.4% of Science Applications International shares are owned by company insiders. Comparatively, 0.6% of Dynatrace shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Dynatrace beats Science Applications International on 11 of the 15 factors compared between the two stocks.

About Science Applications International

Science Applications International Corporation provides technical, engineering, and enterprise information technology (IT) services primarily in the United States. The company’s offerings include engineering; technology integration; IT modernization; maintenance of ground and maritime systems; logistics; training and simulation; operation and program support services; and end-to-end services, such as design, development, integration, deployment, management and operations, sustainment, and security of its customers’ IT infrastructure, as well as cloud migration, managed services, infrastructure modernization, and enterprise IT-as-a-service solutions. It serves the U.S. military comprising Army, Air Force, Navy, Marines, and Coast Guard; Department of Defense agencies; National Aeronautics and Space Administration; the U.S. Department of State; Department of Justice; Department of Homeland Security; and various intelligence community agencies, as well as U.S. federal civilian agencies. The company was formerly known as SAIC Gemini, Inc. and changed its name to Science Applications International Corporation in September 2013. Science Applications International Corporation was founded in 1969 and is headquartered in Reston, Virginia.

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.