Financial Contrast: Genpact (NYSE:G) versus Dynatrace (NYSE:DT)

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Dynatrace and Genpact, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dynatrace	1	5	19	0	2.72
Genpact	0	6	1	1	2.38

Dynatrace presently has a consensus target price of $51.64, suggesting a potential upside of 44.91%. Genpact has a consensus target price of $47.29, suggesting a potential upside of 39.66%. Given Dynatrace’s stronger consensus rating and higher probable upside, research analysts clearly believe Dynatrace is more favorable than Genpact.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dynatrace	9.55%	9.75%	6.45%
Genpact	10.88%	22.02%	10.42%

Risk & Volatility

Dynatrace has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Genpact has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dynatrace	$1.70 billion	6.26	$483.68 million	$0.61	58.42
Genpact	$5.08 billion	1.13	$552.49 million	$3.13	10.82

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

Institutional and Insider Ownership

94.3% of Dynatrace shares are held by institutional investors. Comparatively, 96.0% of Genpact shares are held by institutional investors. 0.6% of Dynatrace shares are held by insiders. Comparatively, 1.6% of Genpact shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Genpact beats Dynatrace on 9 of the 15 factors compared between the two stocks.

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.

About Genpact

Genpact Limited provides business process outsourcing and information technology services in India, rest of Asia, North and Latin America, and Europe. It operates through three segments: Financial services; Consumer and Healthcare; and High Tech and Manufacturing. The Financial Services segment offers retail customer onboarding, customer service, collections, card servicing operations, loan and payment operations, commercial loan, equipment and auto loan, mortgage origination, compliance services, reporting and monitoring, and wealth management operations support; financial crime and risk management services; and underwriting support, new business processing, policy administration, claims management, catastrophe modeling and actuarial services, as well as property and casualty claims. The Consumer and Healthcare segment provides demand generation, sensing and planning, supply chain planning and management, pricing and trade promotion management, deduction recovery management, order management, and digital commerce; and end-to-end claim lifecycle management, from claims processing and adjudication to claims recovery and payment integrity, revenue cycle management, health equity analytics, and care services. The High Tech and Manufacturing segment offers industry-specific solutions for trust and safety, advertising sales support, customer and user experience, and customer care support; and direct and indirect procurement, logistics, field, aftermarket support, and engineering services. It also provides digital operation services; data-tech-Al services; finance and accounting services, such as accounts payable, invoice-to-cash, record to report, financial planning and analysis, and enterprise risk and compliance; CFO advisory services; supply chain, and sourcing and procurement services; sales and commercial, and marketing and experience services; and environmental, social and governance services. The company was founded in 1997 and is based in Hamilton, Bermuda.