Critical Survey: Nutanix (NASDAQ:NTNX) & Fair Isaac (NYSE:FICO)

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

Valuation & Earnings

This table compares Nutanix and Fair Isaac”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nutanix	$2.69 billion	4.28	$188.37 million	$0.92	47.11
Fair Isaac	$2.26 billion	10.82	$651.95 million	$31.57	33.34

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nutanix	0	9	10	1	2.60
Fair Isaac	0	5	10	0	2.67

Nutanix presently has a consensus target price of $60.87, suggesting a potential upside of 40.43%. Fair Isaac has a consensus target price of $1,655.07, suggesting a potential upside of 57.26%. Given Fair Isaac’s stronger consensus rating and higher probable upside, analysts plainly believe Fair Isaac is more favorable than Nutanix.

Insider and Institutional Ownership

85.3% of Nutanix shares are owned by institutional investors. Comparatively, 85.8% of Fair Isaac shares are owned by institutional investors. 2.4% of Nutanix shares are owned by insiders. Comparatively, 3.0% of Fair Isaac shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Nutanix and Fair Isaac’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%
Fair Isaac	33.67%	-41.04%	37.92%

Volatility and Risk

Nutanix has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, Fair Isaac has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.

Summary

Fair Isaac beats Nutanix on 10 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 Fair Isaac

Fair Isaac Corporation develops analytic, software, and digital decisioning technologies and services that enable businesses to automate, enhance, and connect decisions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Scores and Software. The Software segment provides pre-configured analytic and decision management solution designed for various business needs or processes, such as account origination, customer management, customer engagement, fraud detection, financial crimes compliance, and marketing, as well as associated professional services. This segment also offers FICO Platform, a modular software offering designed to support advanced analytic and decision use cases, as well as stand-alone analytic and decisioning software that can be configured by customers to address a wide range of business use cases. The Scores segment provides business-to-business scoring solutions and services for consumers that give clients access to predictive credit and other scores that can be integrated into their transaction streams and decision-making processes, as well as business-to-consumer scoring solutions comprising myFICO.com subscription offerings. It offers FICO Customer Analytics, FICO Responsible AI, FICO Advisors, FICO Business Outcome Simulator, FICO Forecaster, FICO TRIAD Customer Manager, FICO Blaze Advisor, FICO Xpress Optimization, FICO Falcon Fraud Manager, FICO Analytics Workbench, FICO Data Orchestrator, FICO DMP Streaming, FICO Decision Optimizer, and FICO Strategy Director, as well as software implementation and configuration services. The company markets its products and services primarily through its direct sales organization and indirect channels, as well as online. The company was formerly known as Fair Isaac & Company, Inc. and changed its name to Fair Isaac Corporation in July 1992. Fair Isaac Corporation was founded in 1956 and is headquartered in Bozeman, Montana.