Nutanix (NASDAQ:NTNX) vs. Amdocs (NASDAQ:DOX) Financial Comparison

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nutanix	$2.54 billion	4.19	$188.37 million	$0.92	43.53
Amdocs	$4.53 billion	1.61	$564.70 million	$5.17	13.08

Amdocs has higher revenue and earnings than Nutanix. Amdocs 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 Nutanix and Amdocs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nutanix	9.95%	-37.41%	8.37%
Amdocs	12.47%	20.19%	11.23%

Risk and Volatility

Nutanix has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, Amdocs has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Nutanix and Amdocs, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nutanix	0	9	10	1	2.60
Amdocs	0	2	3	0	2.60

Nutanix currently has a consensus price target of $60.87, suggesting a potential upside of 51.98%. Amdocs has a consensus price target of $92.33, suggesting a potential upside of 36.53%. Given Nutanix’s higher possible upside, research analysts plainly believe Nutanix is more favorable than Amdocs.

Institutional & Insider Ownership

85.3% of Nutanix shares are held by institutional investors. Comparatively, 92.0% of Amdocs shares are held by institutional investors. 2.4% of Nutanix shares are held by company insiders. Comparatively, 15.4% of Amdocs shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Amdocs beats Nutanix on 8 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 Amdocs

Amdocs Limited, through its subsidiaries, provides software and services worldwide. It designs, develops, operates, implements, supports, and markets open and modular cloud portfolio. The company provides CES23, a 5G and cloud-native microservices-based market-leading customer experience suite, that enables service providers to build, deliver, and monetize advanced services; Amdocs Subscription Marketplace, a software-as-a-service-based platform that includes an expansive network of pre-integrated digital services, such as media, gaming, eLearning, sports, and retail to security and business services; the monetization suite for charging, billing, policy, and revenue management; Intelligent networking suite with a set of modular, flexible, and open service lifecycle management capabilities for network automation journeys; amAIz, a telco GenAI framework; Amdocs Digital Brands Suite, a pre-integrated digital business suite; and Amdocs eSIM Cloud for service providers. It also offers AI-powered, cloud-native, and home operating systems; data intelligence solutions and applications; end-to-end application development and maintenance services; and ongoing maintenance services. In addition, the company provides a line of services designed for various stages of a service provider’s lifecycle includes consulting, delivery, quality engineering, operations, systems integration, network services, experience-driven services, data, cloud, and content services; managed services comprising application development, modernization and maintenance, IT and infrastructure services, testing and professional services that are designed to assist customers in the selection, implementation, operation, management, and maintenance of IT systems. It serves to the communications, entertainment, and media industry service providers, as well as mobile virtual network operators. Amdocs Limited was founded in 1988 and is headquartered in Saint Louis, Missouri.