Financial Analysis: TaskUs (NASDAQ:TASK) vs. Dynatrace (NYSE:DT)

TaskUs (NASDAQ:TASK) and Dynatrace (NYSE:DT) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares TaskUs and Dynatrace”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TaskUs	$1.18 billion	0.53	$102.28 million	$1.11	6.27
Dynatrace	$1.70 billion	6.34	$483.68 million	$0.61	59.15

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TaskUs	8.64%	22.52%	12.29%
Dynatrace	9.55%	9.75%	6.45%

Insider & Institutional Ownership

44.6% of TaskUs shares are held by institutional investors. Comparatively, 94.3% of Dynatrace shares are held by institutional investors. 31.9% of TaskUs shares are held by company insiders. Comparatively, 0.6% of Dynatrace shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TaskUs	2	5	1	1	2.11
Dynatrace	1	4	19	0	2.75

TaskUs currently has a consensus price target of $14.25, indicating a potential upside of 104.74%. Dynatrace has a consensus price target of $52.13, indicating a potential upside of 44.47%. Given TaskUs’ higher possible upside, research analysts plainly believe TaskUs is more favorable than Dynatrace.

Volatility and Risk

TaskUs has a beta of 2.06, indicating that its stock price is 106% more volatile than the S&P 500. Comparatively, Dynatrace has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.

Summary

Dynatrace beats TaskUs on 8 of the 15 factors compared between the two stocks.

About TaskUs

TaskUs, Inc. provides digital outsourcing services for companies in Philippines, the United States, India, and internationally. It offers digital customer experience that consists of omni-channel customer care services primarily delivered through non-voice digital channels; and other solutions, including experience and customer care services for new product or market launches, and customer acquisition solutions. The company also provides trust and safety solutions, such as review and disposition of user and advertiser generated visual, text, and audio content, which include removal or labeling of policy violating, and offensive or misleading content, as well as risk management, compliance, identity management, and fraud services; and artificial intelligence (AI) solutions that consist of data labeling, annotation, context relevance, and transcription services for training and tuning machine learning algorithms that enables to develop AI systems. It serves clients in various industry segments comprising e-commerce, FinTech, food delivery and ride sharing, gaming, technology, HealthTech, social media, and streaming media. The company was formerly known as TU TopCo, Inc. and changed its name to TaskUs, Inc. in December 2020. TaskUs, Inc. was founded in 2008 and is headquartered in New Braunfels, Texas.

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.