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

Profitability

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

Net Margins Return on Equity Return on Assets
Qualys 18.92% 14.69% 9.39%
Nutanix -40.09% -506.98% -50.35%

Analyst Recommendations

This is a summary of current ratings for Qualys and Nutanix, as reported by MarketBeat.com.

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

Qualys presently has a consensus target price of $45.09, suggesting a potential downside of 11.41%. Nutanix has a consensus target price of $30.15, suggesting a potential upside of 37.36%. Given Nutanix’s stronger consensus rating and higher probable upside, analysts clearly believe Nutanix is more favorable than Qualys.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Qualys $211.63 million 9.02 $52.41 million $1.02 49.90
Nutanix $845.90 million 3.96 -$310.01 million ($4.21) -5.21

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.

Insider and Institutional Ownership

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

Summary

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

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.

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.

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