Head to Head Analysis: Agora (NASDAQ:API) and Dynatrace (NYSE:DT)

Agora (NASDAQ:API) and Dynatrace (NYSE:DT) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Agora	-31.69%	-7.32%	-6.47%
Dynatrace	10.44%	9.73%	6.09%

Institutional and Insider Ownership

40.4% of Agora shares are owned by institutional investors. Comparatively, 94.3% of Dynatrace shares are owned by institutional investors. 14.6% of Agora shares are owned by company insiders. Comparatively, 0.6% of Dynatrace shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Agora	$141.54 million	2.64	-$87.22 million	($0.46)	-8.80
Dynatrace	$1.43 billion	11.15	$154.63 million	$0.55	97.20

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

Risk & Volatility

Agora has a beta of -0.03, meaning that its share price is 103% less volatile than the S&P 500. Comparatively, Dynatrace has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Agora and Dynatrace, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Agora	0	1	0	0	2.00
Dynatrace	0	5	19	0	2.79

Agora presently has a consensus target price of $2.63, indicating a potential downside of 35.06%. Dynatrace has a consensus target price of $61.50, indicating a potential upside of 15.04%. Given Dynatrace’s stronger consensus rating and higher probable upside, analysts clearly believe Dynatrace is more favorable than Agora.

Summary

Dynatrace beats Agora on 13 of the 14 factors compared between the two stocks.

About Agora

Agora, Inc. operates in real-time engagement technology business in the People's Republic of China, the United States, and internationally. The company offers real-time engagement platform-as-a-services providing developers with application programming interfaces to embed real-time voice, video, interactive live-streaming, chat, whiteboard, and artificial intelligence capabilities into their applications. It also provides video and voice calling, interactive live and broadcast streaming, chat, signaling, and interactive whiteboard products; and extensions, such as analytics, recording, AI noise suppression, 3D spatial audio, real-time transcription, and extensions marketplace. In addition, the company offers Application Platforms, including Flexible Classroom, a low-code application Platform as a Service, which combines video, voice, chat, signaling, whiteboard and recording functionalities into an integrated cloud-based solution for education providers; and App Builder, a no-code application platform, designed for developers with little or no coding experience to build their own applications with video conference and live streaming functionalities. It operates through Agora and Shengwang brands. Agora, Inc. was incorporated in 2013 and is headquartered in Santa Clara, California.

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.