Nutanix (NASDAQ:NTNX) vs. Vertiv (NYSE:VRT) Head to Head Review

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nutanix	$2.54 billion	4.30	$188.37 million	$0.92	43.90
Vertiv	$10.23 billion	9.33	$1.33 billion	$3.41	73.13

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.

Risk and Volatility

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

Analyst Ratings

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

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

Nutanix currently has a consensus target price of $62.43, indicating a potential upside of 54.56%. Vertiv has a consensus target price of $230.28, indicating a potential downside of 7.66%. Given Nutanix’s higher probable upside, analysts clearly believe Nutanix is more favorable than Vertiv.

Insider and Institutional Ownership

85.3% of Nutanix shares are held by institutional investors. Comparatively, 89.9% of Vertiv shares are held by institutional investors. 2.4% of Nutanix shares are held by company insiders. Comparatively, 2.6% of Vertiv shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

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

Summary

Vertiv beats Nutanix on 14 of the 15 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 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.