Head to Head Survey: Nutanix (NASDAQ:NTNX) & Dynatrace (NYSE:DT)

Nutanix (NASDAQ:NTNX) and Dynatrace (NYSE:DT) are both large-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Nutanix and Dynatrace, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nutanix	0	4	14	0	2.78
Dynatrace	0	6	18	1	2.80

Nutanix presently has a consensus price target of $87.67, suggesting a potential upside of 28.28%. Dynatrace has a consensus price target of $62.96, suggesting a potential upside of 31.35%. Given Dynatrace’s stronger consensus rating and higher possible upside, analysts plainly believe Dynatrace is more favorable than Nutanix.

Risk and Volatility

Nutanix has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, Dynatrace has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nutanix	7.42%	-28.01%	7.03%
Dynatrace	27.75%	9.15%	6.00%

Insider and Institutional Ownership

85.3% of Nutanix shares are held by institutional investors. Comparatively, 94.3% of Dynatrace shares are held by institutional investors. 6.8% of Nutanix shares are held by insiders. Comparatively, 0.6% of Dynatrace shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Nutanix and Dynatrace”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nutanix	$2.54 billion	7.24	$188.37 million	$0.64	106.78
Dynatrace	$1.70 billion	8.51	$483.68 million	$1.63	29.40

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

Summary

Dynatrace beats Nutanix on 11 of the 15 factors compared between the two stocks.

About Nutanix

Nutanix, Inc. engages in the provision of a cloud platform leveraging web-scale engineering and consumer-grade design. It operates through the following geographic segments: United States, Europe, the Middle East, Africa, Asia Pacific, and Other Americas. The firm also provides software solutions and cloud services to customers’ enterprise infrastructure. The company was founded by Dheeraj Pandey, Ajeet Singh, and Mohit Aron in 2009 and is headquartered in San Jose, CA.

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.