LM Funding America (NASDAQ:PWCM) and Dynatrace (NYSE:DT) Financial Analysis

Dynatrace (NYSE:DT) and LM Funding America (NASDAQ:PWCM) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Volatility & Risk

Dynatrace has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, LM Funding America has a beta of 2.17, indicating that its share price is 117% more volatile than the S&P 500.

Earnings & Valuation

This table compares Dynatrace and LM Funding America”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dynatrace	$2.02 billion	6.25	$162.67 million	$0.54	81.44
LM Funding America	$8.85 million	0.11	-$26.92 million	($60.51)	-0.01

Dynatrace has higher revenue and earnings than LM Funding America. LM Funding America 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 current recommendations and price targets for Dynatrace and LM Funding America, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dynatrace	0	8	24	0	2.75
LM Funding America	1	0	0	0	1.00

Dynatrace currently has a consensus target price of $62.00, indicating a potential upside of 40.98%. Given Dynatrace’s stronger consensus rating and higher probable upside, research analysts clearly believe Dynatrace is more favorable than LM Funding America.

Institutional and Insider Ownership

94.3% of Dynatrace shares are owned by institutional investors. Comparatively, 22.7% of LM Funding America shares are owned by institutional investors. 0.7% of Dynatrace shares are owned by company insiders. Comparatively, 5.5% of LM Funding America shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Dynatrace and LM Funding America’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dynatrace	7.42%	12.73%	7.17%
LM Funding America	-413.92%	-132.69%	-78.02%

Summary

Dynatrace beats LM Funding America on 11 of the 13 factors compared between the two stocks.

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.

About LM Funding America

LM Funding America, Inc. operates as a cryptocurrency mining and specialty finance company. It operates through two segments, Specialty Finance and Mining Operations. The company also engages in Bitcoin mining operations; and provides funding to nonprofit community associations. The company was founded in 2008 and is based in Tampa, Florida.