Dynatrace, Inc. (DT) vs Unity Software Inc. (U)

Dynatrace, Inc. and Unity Software Inc. are both Software Application companies. Dynatrace, Inc. and Unity Software Inc. are of similar size ($18.2B and $17.0B). Unity Software Inc. has negative trailing earnings, so its P/E is not meaningful; Dynatrace, Inc. trades at 114×. Dynatrace, Inc. grew revenue faster over the last twelve months: 17.9% against 14.0%. Dynatrace, Inc. has the higher net margin (7.22% vs −29.0%) and the higher return on invested capital (11.9% vs −13.2%). Across the 20 metrics below, Dynatrace, Inc. leads on 16 and Unity Software Inc. on 4.

Valuation

Metric DT U Software Application median
P/E 113.63 n/m 24.79
P/S 8.08 8.97 2.67
P/B 6.91 5.98 3.01
Price to free cash flow 29.66 34.80 16.59
EV/EBITDA 56.83 n/m 14.40
EV/Sales 7.59 8.91 2.62
Earnings yield 0.88% (3.27%) 0.00%
Free cash flow yield 3.37% 2.87% 1.91%

Profitability

Metric DT U Software Application median
Gross margin 81.37% 64.85% 67.03%
Operating margin 12.15% (30.37%) 0.00%
Net margin 7.22% (28.97%) 0.00%
Free cash flow margin 27.23% 26.54% 4.32%
Return on equity 5.88% (18.85%) 0.00%
Return on assets 3.70% (8.78%) 0.00%
Return on invested capital 11.85% (13.16%) 0.00%

Growth

Metric DT U Software Application median
Revenue growth (TTM) 17.94% 13.98% 12.40%
EPS growth (last fiscal year) (66.04%) 42.86% —
Revenue growth, 5-year CAGR 23.47% 19.08% 13.72%
Net income growth, 5-year CAGR 16.53% 0.00% 0.00%

Health

Metric DT U Software Application median
Debt to equity 0.00 0.74 0.02
Current ratio 1.21 2.03 1.55
Net debt to EBITDA (4.35) (9.91) 0.06

Dividend

Metric DT U Software Application median
Dividend yield — — 1.25%
Payout ratio 0.00 0.00 0.00

Size

Metric DT U Software Application median
Market cap 16.96b 18.19b 396.11m

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