Head-To-Head Analysis: Vertiv (NYSE:VRT) vs. Nutanix (NASDAQ:NTNX)

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

Insider and Institutional Ownership

89.9% of Vertiv shares are owned by institutional investors. Comparatively, 85.3% of Nutanix shares are owned by institutional investors. 5.0% of Vertiv shares are owned by insiders. Comparatively, 2.4% of Nutanix shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vertiv	$10.23 billion	9.13	$1.33 billion	$3.41	71.61
Nutanix	$2.54 billion	4.34	$188.37 million	$0.92	44.24

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vertiv	13.03%	49.55%	15.30%
Nutanix	9.95%	-37.41%	8.37%

Analyst Ratings

This is a summary of recent recommendations for Vertiv and Nutanix, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vertiv	1	2	19	1	2.87
Nutanix	0	7	11	0	2.61

Vertiv currently has a consensus target price of $230.28, suggesting a potential downside of 5.69%. Nutanix has a consensus target price of $62.43, suggesting a potential upside of 53.39%. Given Nutanix’s higher probable upside, analysts plainly believe Nutanix is more favorable than Vertiv.

Volatility & Risk

Vertiv has a beta of 2.02, indicating that its share price is 102% more volatile than the S&P 500. Comparatively, Nutanix has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500.

Summary

Vertiv beats Nutanix on 14 of the 15 factors compared between the two stocks.

About Vertiv

Vertiv Holdings Co, together with its subsidiaries, designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It offers AC and DC power management products, switchgear and busbar products, thermal management products, integrated rack systems, modular solutions, and management systems for monitoring and controlling digital infrastructure that are integral to the technologies used for various services, including e-commerce, online banking, file sharing, video on-demand, energy storage, wireless communications, Internet of Things, and online gaming. The company also provides lifecycle management services, predictive analytics, and professional services for deploying, maintaining, and optimizing its products and their related systems; and preventative maintenance, acceptance testing, engineering and consulting, performance assessments, remote monitoring, training, spare parts, and digital critical infrastructure software services. It offers its products primarily under the Vertiv, Liebert, NetSure, Geist, E&I, Powerbar, and Avocent brands. The company serves cloud services, financial services, healthcare, transportation, manufacturing, energy, education, government, social media, and retail industries through a network of direct sales professionals, independent sales representatives, channel partners, and original equipment manufacturers. Vertiv Holdings Co is headquartered in Westerville, Ohio.

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.