Presto Automation (NASDAQ:PRST) versus Dynatrace (NYSE:DT) Critical Analysis

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Presto Automation and Dynatrace, as reported by MarketBeat.

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

Dynatrace has a consensus price target of $63.25, suggesting a potential upside of 30.56%. Given Dynatrace’s stronger consensus rating and higher possible upside, analysts plainly believe Dynatrace is more favorable than Presto Automation.

Volatility & Risk

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Presto Automation	$19.05 million	0.00	-$34.48 million	($1.23)	0.00
Dynatrace	$1.63 billion	8.87	$154.63 million	$1.60	30.28

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.

Profitability

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

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

Institutional & Insider Ownership

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

Summary

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

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.

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.