Nutanix (NASDAQ:NTNX – Get Free Report) and C3.ai (NYSE:AI – Get Free Report) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.
Institutional and Insider Ownership
85.3% of Nutanix shares are held by institutional investors. Comparatively, 39.0% of C3.ai shares are held by institutional investors. 2.4% of Nutanix shares are held by insiders. Comparatively, 26.5% of C3.ai shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Nutanix and C3.ai, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nutanix | 0 | 8 | 10 | 0 | 2.56 |
| C3.ai | 6 | 6 | 1 | 0 | 1.62 |
Profitability
This table compares Nutanix and C3.ai’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nutanix | 10.03% | -38.96% | 8.55% |
| C3.ai | -187.95% | -62.44% | -50.47% |
Risk and Volatility
Nutanix has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, C3.ai has a beta of 2.06, meaning that its share price is 106% more volatile than the S&P 500.
Earnings & Valuation
This table compares Nutanix and C3.ai”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nutanix | $2.54 billion | 5.87 | $188.37 million | $0.95 | 58.01 |
| C3.ai | $250.27 million | 5.33 | -$470.37 million | ($3.34) | -2.57 |
Nutanix has higher revenue and earnings than C3.ai. C3.ai is trading at a lower price-to-earnings ratio than Nutanix, indicating that it is currently the more affordable of the two stocks.
Summary
Nutanix beats C3.ai on 11 of the 14 factors compared between the two stocks.
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.
About C3.ai
C3.ai, Inc. operates as an enterprise artificial intelligence (AI) software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company provides C3 AI platform, an application development and runtime environment that enables customers to design, develop, and deploy enterprise AI applications; C3 AI Ex Machina for analysis-ready data; C3 AI CRM, an industry specific customer relationship management solution; and C3 Generative AI Product Suite that enables to locate, retrieve, and present information. It also offers C3 AI applications, including C3 AI Inventory Optimization, a solution to optimize raw material, in-process, and finished goods inventory levels; C3 AI Supply Network Risk, which identifies emerging inbound and outbound risks across the network; C3 AI Sustainability Suite, which helps to decrease greenhouse gas emission; C3 AI Production Schedule Optimization, a solution for scheduling production; C3 AI Financial Services Suite, which helps to minimize compliance risks; and C3 AI Energy Management solution. In addition, it offers integrated turnkey enterprise AI applications for oil and gas, chemicals, utilities, manufacturing, financial services, defense, intelligence, aerospace, healthcare, and telecommunications market. It has strategic partnerships with Baker Hughes in the areas of oil and gas market; Booz Allen to provide solutions to government, defense, and intelligence sectors; Raytheon; and AWS, Google, and Microsoft. The company was formerly known as C3 IoT, Inc. and changed its name to C3.ai, Inc. in June 2019. C3.ai, Inc. was incorporated in 2009 and is headquartered in Redwood City, California.
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