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 ($19.1B and $18.4B). Unity Software Inc. has negative trailing earnings, so its P/E is not meaningful; Dynatrace, Inc. trades at 120×. 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 119.82 n/m 25.41
P/S 8.52 8.72 2.73
P/B 7.29 5.82 2.57
Price to free cash flow 31.27 33.83 17.58
EV/EBITDA 60.66 n/m 15.36
EV/Sales 8.10 8.67 2.59
Earnings yield 0.83% (3.37%) 0.00%
Free cash flow yield 3.20% 2.96% 2.24%

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% 5.01%
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% 12.48%
EPS growth (last fiscal year) (66.04%) 42.86% 32.26%
Revenue growth, 5-year CAGR 23.47% 19.08% 14.21%
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 1.52
Net debt to EBITDA (4.35) (9.91) 0.08

Dividend

Metric DT U Software Application median
Dividend yield — — 0.95%
Payout ratio — — 0.29

Size

Metric DT U Software Application median
Market cap 18.42b 19.07b 357.77m

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