Nutanix (NASDAQ:NTNX) vs. Samsara (NYSE:IOT) Critical Survey

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

Volatility and Risk

Samsara has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500. Comparatively, Nutanix has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Samsara	4.90%	4.13%	2.35%
Nutanix	52.81%	-90.13%	9.09%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Samsara	$1.62 billion	16.26	-$9.12 million	$0.16	280.86
Nutanix	$2.85 billion	6.69	$1.51 billion	$5.16	13.68

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Samsara and Nutanix, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Samsara	0	6	14	2	2.82
Nutanix	0	9	9	0	2.50

Samsara presently has a consensus target price of $51.68, indicating a potential upside of 15.01%. Nutanix has a consensus target price of $73.07, indicating a potential upside of 3.53%. Given Samsara’s stronger consensus rating and higher possible upside, research analysts plainly believe Samsara is more favorable than Nutanix.

Insider & Institutional Ownership

96.0% of Samsara shares are held by institutional investors. Comparatively, 85.3% of Nutanix shares are held by institutional investors. 35.1% of Samsara shares are held by insiders. Comparatively, 2.4% of Nutanix shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Samsara beats Nutanix on 10 of the 15 factors compared between the two stocks.

About Samsara

Samsara Inc. provides solutions that connects physical operations data to its connected operations cloud in the United States and internationally. The company's Connected Operations Cloud includes Data Platform, which ingests, aggregates, and enriches data from its IoT devices and has embedded capabilities for AI, workflows and analytics, alerts, API connections, and data security and privacy. Its applications include video-based safety that enables customers to build a safety program and protect their teams with AI-enabled video; vehicle telematics which provides visibility into real-time vehicle location and diagnostics with GPS tracking, routing and dispatch, fuel efficiency management, electric vehicle usage and charge planning, preventative maintenance, and insights to manage fuel and energy costs; and mobile apps and workflows that improves productivity for frontline workers and enables regulatory compliance for workers to see upcoming jobs, capture electronic documents, perform maintenance inspections, maintain compliance logs, and message with back-office administration. The company also provides equipment monitoring which offers visibility and management of unpowered and powered assets, ranging from generators and compressors to heavy construction equipment and trailers to improve operating efficiency, prevent unplanned downtime, and avoid critical safety and compliance issues; and site visibility that provides remote visibility into sites to improve onsite security, safety, and incident response times. It serves transportation, wholesale and retail trade, construction, field services, logistics, utilities and energy, healthcare and education, manufacturing, food and beverage, and other industries, as well as government. Samsara Inc. was incorporated in 2015 and is headquartered in San Francisco, California.

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.