Nutanix (NASDAQ:NTNX) and Paycom Software (NYSE:PAYC) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.
Profitability
This table compares Nutanix and Paycom Software's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Nutanix | -69.59% | -1,175,319.00% | -40.41% |
Paycom Software | 20.21% | 26.72% | 6.81% |
Analyst Ratings
This is a summary of recent recommendations and price targets for Nutanix and Paycom Software, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Nutanix | 0 | 7 | 9 | 0 | 2.56 |
Paycom Software | 0 | 7 | 8 | 0 | 2.53 |
Nutanix presently has a consensus price target of $35.50, indicating a potential upside of 17.22%. Paycom Software has a consensus price target of $406.8824, indicating a potential upside of 8.72%. Given Nutanix's stronger consensus rating and higher possible upside, equities analysts clearly believe Nutanix is more favorable than Paycom Software.
Insider and Institutional Ownership
67.0% of Nutanix shares are owned by institutional investors. Comparatively, 74.2% of Paycom Software shares are owned by institutional investors. 6.7% of Nutanix shares are owned by company insiders. Comparatively, 16.1% of Paycom Software shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Risk & Volatility
Nutanix has a beta of 1.97, meaning that its stock price is 97% more volatile than the S&P 500. Comparatively, Paycom Software has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500.
Earnings & Valuation
This table compares Nutanix and Paycom Software's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Nutanix | $1.31 billion | 4.67 | $-872,880,000.00 | ($4.19) | -7.23 |
Paycom Software | $737.67 million | 30.54 | $180.58 million | $2.86 | 130.85 |
Paycom Software has lower revenue, but higher earnings than Nutanix. Nutanix is trading at a lower price-to-earnings ratio than Paycom Software, indicating that it is currently the more affordable of the two stocks.
Summary
Paycom Software beats Nutanix on 9 of the 14 factors compared between the two stocks.