Comparing Dynatrace (NYSE:DT) & Hello Group (NASDAQ:MOMO)

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

Risk and Volatility

Dynatrace has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Hello Group has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dynatrace	11.77%	11.81%	7.07%
Hello Group	14.53%	16.70%	11.39%

Insider & Institutional Ownership

94.3% of Dynatrace shares are owned by institutional investors. Comparatively, 53.9% of Hello Group shares are owned by institutional investors. 0.5% of Dynatrace shares are owned by company insiders. Comparatively, 61.4% of Hello Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Dynatrace and Hello Group’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dynatrace	$1.16 billion	11.88	$107.96 million	$0.49	95.74
Hello Group	$1.84 billion	0.74	$215.20 million	$1.28	5.59

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

Analyst Ratings

This is a summary of recent recommendations for Dynatrace and Hello Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dynatrace	0	7	16	0	2.70
Hello Group	0	2	3	0	2.60

Dynatrace currently has a consensus price target of $53.61, suggesting a potential upside of 14.27%. Hello Group has a consensus price target of $13.30, suggesting a potential upside of 86.01%. Given Hello Group’s higher probable upside, analysts clearly believe Hello Group is more favorable than Dynatrace.

Summary

Hello Group beats Dynatrace on 8 of the 14 factors compared between the two stocks.

About Dynatrace

Dynatrace, Inc. provides a security platform for multicloud environments. It 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, develop and release software, and enhance user experiences. The company also offers implementation, consulting, and training services. Dynatrace, Inc. 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, insurance, retail, manufacturing, travel, and software. The company operates in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. Dynatrace, Inc. was founded in 2005 and is headquartered in Waltham, Massachusetts.

About Hello Group

Hello Group Inc. provides mobile-based social and entertainment services in the People's Republic of China. The company offers Momo, a mobile application that connects people and facilitates social interactions based on location, interests, and various online recreational activities including, live talent shows, short videos, social games, as well as other video- and audio-based interactive experiences, such as online parties, mobile karaoke and user participated reality shows; Tantan, a social and dating application; and other applications under the Hertz, Soulchill, Duidui, and Tietie names. The company also provides livestream services for various content and activities comprising talent shows, such as singing, dancing, and talk shows, as well as casual chatting, and other forms of interactions between broadcasters and viewers to its platform's users; value-added services; advertising and marketing services; and mobile games. The company was formerly known as Momo Inc. and changed its name to Hello Group Inc. in August 2021. Hello Group Inc. was incorporated in 2011 and is headquartered in Beijing, the People's Republic of China.