Comparing Dynatrace (NYSE:DT) and Presto Automation (NASDAQ:PRST)

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

Volatility and Risk

Dynatrace has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Presto Automation has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Dynatrace and Presto Automation, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dynatrace	0	8	16	0	2.67
Presto Automation	0	0	0	0	0.00

Dynatrace presently has a consensus price target of $63.21, indicating a potential upside of 25.17%. Given Dynatrace’s stronger consensus rating and higher probable upside, analysts plainly believe Dynatrace is more favorable than Presto Automation.

Insider and Institutional Ownership

94.3% of Dynatrace shares are owned by institutional investors. Comparatively, 20.9% of Presto Automation shares are owned by institutional investors. 0.6% of Dynatrace shares are owned by company insiders. Comparatively, 10.0% of Presto Automation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dynatrace	29.51%	8.98%	5.74%
Presto Automation	N/A	N/A	N/A

Earnings and Valuation

This table compares Dynatrace and Presto Automation”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dynatrace	$1.63 billion	9.25	$154.63 million	$1.60	31.56
Presto Automation	$19.05 million	0.00	-$34.48 million	($1.23)	0.00

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

Summary

Dynatrace beats Presto Automation on 13 of the 14 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 Presto Automation

Presto Automation Inc. engages in the provision of artificial intelligence (AI) and automation solutions to the restaurant enterprise technology industry in the United States. The company offers Presto Voice, an AI solution to quick service restaurants that completes complex orders, including large orders with multiple menu modifications and add-ons, with limited on-site restaurant staff intervention; and Presto Touch, a pay-at-table tablet solution to casual dining chains that enables self-serve ordering, payment processing, personalization, and gaming experiences for restaurant guests. Presto Automation, Inc. was founded in 2008 and is headquartered in San Carlos, California.