Comparing Nutanix (NASDAQ:NTNX) & CDW (NASDAQ:CDW)

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

Institutional and Insider Ownership

93.2% of CDW shares are owned by institutional investors. Comparatively, 85.3% of Nutanix shares are owned by institutional investors. 0.8% of CDW shares are owned by company insiders. Comparatively, 2.4% of Nutanix shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares CDW and Nutanix”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CDW	$22.90 billion	0.78	$1.07 billion	$8.22	16.94
Nutanix	$2.54 billion	5.73	$188.37 million	$0.95	56.59

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CDW	4.70%	49.67%	8.02%
Nutanix	10.03%	-38.96%	8.55%

Volatility and Risk

CDW has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Nutanix has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for CDW and Nutanix, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CDW	0	3	5	1	2.78
Nutanix	0	8	10	0	2.56

CDW presently has a consensus target price of $144.12, suggesting a potential upside of 3.52%. Nutanix has a consensus target price of $60.00, suggesting a potential upside of 11.61%. Given Nutanix’s higher probable upside, analysts plainly believe Nutanix is more favorable than CDW.

Summary

CDW beats Nutanix on 8 of the 15 factors compared between the two stocks.

About CDW

CDW Corporation provides information technology (IT) solutions in the United States, the United Kingdom, and Canada. It operates through three segments: Corporate, Small Business, and Public. The company offers discrete hardware and software products and services, as well as integrated IT solutions, including on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security. It also provides hardware products comprising notebooks/mobile devices, tablets, network communications, desktop computers, collaboration, data storage and servers, and others; and software products, such as cloud solutions, software assurance, application suites, security, virtualization, operating systems, and network management. In addition, the company offers advisory and design, software development, implementation, managed, professional, configuration, partner, and telecom services, as well as warranties; delivers and manages mission critical software, systems, and network solutions; and implementation and installation, and repair services to its customers through various third-party service providers. It serves government, education, and healthcare customers; and small, medium, and large business customers. CDW Corporation was founded in 1984 and is headquartered in Vernon Hills, Illinois.

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.