Reviewing Dynatrace (NYSE:DT) and Datasea (NASDAQ:DTSS)

Datasea (NASDAQ:DTSS) 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 profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Datasea	$71.62 million	0.13	-$5.09 million	($0.32)	-2.88
Dynatrace	$1.70 billion	6.63	$483.68 million	$0.61	61.93

Dynatrace has higher revenue and earnings than Datasea. Datasea 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 Datasea and Dynatrace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Datasea	-4.80%	-88.98%	-37.33%
Dynatrace	9.55%	9.75%	6.45%

Volatility & Risk

Datasea has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Dynatrace has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500.

Insider & Institutional Ownership

82.1% of Datasea shares are owned by institutional investors. Comparatively, 94.3% of Dynatrace shares are owned by institutional investors. 50.7% of Datasea shares are owned by company insiders. Comparatively, 0.6% of Dynatrace shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Datasea and Dynatrace, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Datasea	1	0	0	0	1.00
Dynatrace	0	6	19	0	2.76

Dynatrace has a consensus target price of $53.48, suggesting a potential upside of 41.58%. Given Dynatrace’s stronger consensus rating and higher possible upside, analysts plainly believe Dynatrace is more favorable than Datasea.

Summary

Dynatrace beats Datasea on 12 of the 14 factors compared between the two stocks.

About Datasea

Datasea Inc., through its subsidiaries, provides technology and information systems in the People's Republic of China. The company provides smart city solutions and 5G messaging applications. It also offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities. In addition, the company provides intelligent acoustics products, which include ultrasonic air sterilizer, air purification and deodorization, and other products. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.

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.