Dynatrace (NYSE:DT) versus Nutanix (NASDAQ:NTNX) Head-To-Head Analysis

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

Institutional & Insider Ownership

94.3% of Dynatrace shares are owned by institutional investors. Comparatively, 85.3% of Nutanix shares are owned by institutional investors. 0.6% of Dynatrace shares are owned by company insiders. Comparatively, 6.8% of Nutanix shares are owned 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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Dynatrace and Nutanix, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dynatrace	0	7	18	1	2.77
Nutanix	0	3	14	1	2.89

Dynatrace currently has a consensus target price of $62.52, indicating a potential upside of 27.25%. Nutanix has a consensus target price of $89.07, indicating a potential upside of 19.78%. Given Dynatrace’s higher possible upside, equities research analysts clearly believe Dynatrace is more favorable than Nutanix.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dynatrace	$1.70 billion	8.72	$483.68 million	$1.63	30.14
Nutanix	$2.54 billion	7.88	$188.37 million	$0.64	116.19

Dynatrace has higher earnings, but lower revenue than Nutanix. Dynatrace 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 Dynatrace and Nutanix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dynatrace	27.75%	9.15%	6.00%
Nutanix	7.42%	-28.01%	7.03%

Volatility & Risk

Dynatrace has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, Nutanix has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.

Summary

Dynatrace beats Nutanix on 9 of the 14 factors compared between the two stocks.

About Dynatrace

Dynatrace, Inc. provides a security platform for multicloud environments in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates Dynatrace, a security platform, which provides application and microservices monitoring, runtime application security, infrastructure monitoring, log management and analytics, digital experience monitoring, digital business analytics, and cloud automation. Its platform allows its customers to modernize and automate IT operations, delivers software, and enhance user experiences. In addition, the company offers implementation, consulting, and training services. It markets its products through a combination of direct sales team and a network of partners, including resellers, system integrators, and managed service providers. It serves customers in various industries comprising banking, financial services, government, insurance, retail and wholesale, transportation, and software. Dynatrace, Inc. was founded in 2005 and is headquartered in Waltham, Massachusetts.

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.