Nutanix (NASDAQ: NTNX) and Qualys (NASDAQ:QLYS) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Nutanix and Qualys, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nutanix 1 5 15 1 2.73
Qualys 0 8 7 0 2.47

Nutanix presently has a consensus target price of $30.15, indicating a potential upside of 38.75%. Qualys has a consensus target price of $45.09, indicating a potential downside of 11.76%. Given Nutanix’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Nutanix is more favorable than Qualys.

Profitability

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

Net Margins Return on Equity Return on Assets
Nutanix -59.72% -248.46% -48.63%
Qualys 18.92% 14.69% 9.39%

Institutional & Insider Ownership

32.2% of Nutanix shares are owned by institutional investors. Comparatively, 73.8% of Qualys shares are owned by institutional investors. 30.2% of Qualys shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Nutanix and Qualys’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Nutanix $845.90 million 3.92 -$310.01 million ($4.21) -5.16
Qualys $211.63 million 9.06 $52.41 million $1.02 50.10

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

Summary

Qualys beats Nutanix on 8 of the 13 factors compared between the two stocks.

About Nutanix

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.

About Qualys

Qualys, Inc. is a provider of cloud-based security and compliance solutions. The Company’s solutions enable organizations to identify security risks to their information technology (IT) infrastructures, help protect their IT systems and applications from cyber-attacks. Its suite of security and compliance solutions delivered on its Qualys Cloud Platform enables its customers to identify their IT assets, collect and analyze IT security data, discover and prioritize vulnerabilities, recommend remediation actions and verify the implementation of such actions. Its Qualys Cloud Platform consists of a suite of IT security and compliance solutions. The Qualys Cloud Suite includes solutions, such as Vulnerability Management, Continuous Monitoring, Cloud Agent, AssetView, ThreatPROTECT, Policy Compliance, Payment Card Industry Compliance, Security Assessment Questionnaire, Web Application Scanning and Web Application Firewall. It provides its solutions through a software-as-a-service model.

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