Demandware (NYSE: DWRE) and Nutanix (NASDAQ:NTNX) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitabiliy, analyst recommendations, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Demandware and Nutanix, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Demandware 0 1 0 0 2.00
Nutanix 1 6 15 0 2.64

Demandware currently has a consensus price target of $75.00, suggesting a potential upside of 0.04%. Nutanix has a consensus price target of $31.67, suggesting a potential upside of 70.25%. Given Nutanix’s stronger consensus rating and higher possible upside, analysts plainly believe Nutanix is more favorable than Demandware.

Valuation and Earnings

This table compares Demandware and Nutanix’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Demandware N/A N/A N/A ($1.20) -62.47
Nutanix $680.55 million 3.94 -$350.05 million N/A N/A

Demandware has higher revenue, but lower earnings than Nutanix.

Institutional and Insider Ownership

14.8% of Nutanix shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Demandware -17.65% -16.30% -12.67%
Nutanix -58.39% -395.51% -64.67%

Summary

Nutanix beats Demandware on 5 of the 8 factors compared between the two stocks.

Demandware Company Profile

Demandware, Inc. is a provider of enterprise-class cloud commerce solutions for retailers and branded manufacturers, including solutions for digital commerce and point of sale, as well as order management and intelligence capabilities. The Company’s Demandware Commerce offering is a combination of its cloud platform, community and related services that enables customers to establish and execute complex digital commerce solutions. Demandware Commerce facilitates omni-channel processes, multi-brand and multi-site rollouts, predictive merchandising and in-store operations. Its technology platform is the Demandware Commerce Cloud. The Demandware Commerce Cloud consists of over two primary solutions, such as Demandware Digital and Demandware Store. It also offers Demandware LINK, which includes technology, solution and an end-to end partners. LINK Technology Partners provide customers with access to technologies that complement the Demandware Commerce Cloud through pre-built integrations.

Nutanix Company Profile

Nutanix, Inc. is a United States-based company, which provides an enterprise cloud platform that converges silos of server, virtualization and storage into an integrated solution. The Company’s enterprise cloud platform connects to public cloud services. It has operations in the United States; Europe, the Middle East and Africa; Asia-Pacific, and Other Americas. Its solution consists of software product families, including Acropolis and Prism. Its solution is delivered on commodity x86 servers. Acropolis includes its Distributed Storage Fabric that delivers enterprise-grade data management features. Acropolis also includes a built-in hypervisor, and its Application Mobility Fabric that enables application placement, conversion and migration across various hypervisors, and between public and private clouds. Prism delivers integrated virtualization and infrastructure management, operational analytics and a suite of one-click administration capabilities.

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