Financial Survey: Nutanix (NASDAQ:NTNX) and ASGN (NYSE:ASGN)

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

Institutional and Insider Ownership

95.4% of ASGN shares are held by institutional investors. Comparatively, 85.3% of Nutanix shares are held by institutional investors. 3.4% of ASGN shares are held by company insiders. Comparatively, 2.4% of Nutanix shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ASGN	3	3	2	0	1.88
Nutanix	0	4	14	1	2.84

ASGN presently has a consensus price target of $59.67, indicating a potential upside of 39.71%. Nutanix has a consensus price target of $87.67, indicating a potential upside of 33.01%. Given ASGN’s higher possible upside, research analysts clearly believe ASGN is more favorable than Nutanix.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ASGN	3.28%	11.42%	5.68%
Nutanix	7.42%	-28.01%	7.03%

Volatility and Risk

ASGN has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Nutanix has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ASGN	$3.99 billion	0.46	$175.20 million	$2.97	14.38
Nutanix	$2.54 billion	6.98	$188.37 million	$0.64	102.98

Nutanix has lower revenue, but higher earnings than ASGN. ASGN 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 ASGN on 8 of the 15 factors compared between the two stocks.

About ASGN

ASGN Incorporated engages in the provision of information technology (IT) services and solutions in the technology, digital, and creative fields for commercial and government sectors in the United States, Canada, and Europe. It operates through two segments: Commercial and Federal Government. The Commercial Segment provides consulting, creative digital marketing, and permanent placement services primarily to enterprise clients. This segment also offers workforce mobilization, modern enterprise, and digital innovation IT consulting services; and cloud, data and analytics, and digital transformation solutions. The Federal Government Segment provides mission-critical solutions to the department of defense, intelligence communities, and federal civilian agencies. This segment offers cloud, cybersecurity, artificial intelligence, machine learning, application and IT modernization, and science and engineering solutions. The company was formerly known as On Assignment, Inc. and changed its name to ASGN Incorporated in April 2018. ASGN Incorporated was founded in 1985 and is based in Glen Allen, Virginia.

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.