Genpact (NYSE:G) versus Nutanix (NASDAQ:NTNX) Critical Comparison

Genpact (NYSE:G) and Nutanix (NASDAQ:NTNX) 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.

Insider & Institutional Ownership

96.0% of Genpact shares are owned by institutional investors. Comparatively, 85.3% of Nutanix shares are owned by institutional investors. 3.1% of Genpact shares are owned by company insiders. Comparatively, 2.4% of Nutanix shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Genpact has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, Nutanix has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Genpact	10.88%	22.02%	10.42%
Nutanix	9.95%	-37.41%	8.37%

Analyst Ratings

This is a summary of recent recommendations and price targets for Genpact and Nutanix, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genpact	0	6	1	1	2.38
Nutanix	0	7	11	0	2.61

Genpact presently has a consensus price target of $47.29, indicating a potential upside of 22.35%. Nutanix has a consensus price target of $62.43, indicating a potential upside of 58.13%. Given Nutanix’s stronger consensus rating and higher possible upside, analysts clearly believe Nutanix is more favorable than Genpact.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genpact	$5.08 billion	1.29	$552.49 million	$3.13	12.35
Nutanix	$2.54 billion	4.21	$188.37 million	$0.92	42.91

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

Summary

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

About Genpact

Genpact Limited provides business process outsourcing and information technology services in India, rest of Asia, North and Latin America, and Europe. It operates through three segments: Financial services; Consumer and Healthcare; and High Tech and Manufacturing. The Financial Services segment offers retail customer onboarding, customer service, collections, card servicing operations, loan and payment operations, commercial loan, equipment and auto loan, mortgage origination, compliance services, reporting and monitoring, and wealth management operations support; financial crime and risk management services; and underwriting support, new business processing, policy administration, claims management, catastrophe modeling and actuarial services, as well as property and casualty claims. The Consumer and Healthcare segment provides demand generation, sensing and planning, supply chain planning and management, pricing and trade promotion management, deduction recovery management, order management, and digital commerce; and end-to-end claim lifecycle management, from claims processing and adjudication to claims recovery and payment integrity, revenue cycle management, health equity analytics, and care services. The High Tech and Manufacturing segment offers industry-specific solutions for trust and safety, advertising sales support, customer and user experience, and customer care support; and direct and indirect procurement, logistics, field, aftermarket support, and engineering services. It also provides digital operation services; data-tech-Al services; finance and accounting services, such as accounts payable, invoice-to-cash, record to report, financial planning and analysis, and enterprise risk and compliance; CFO advisory services; supply chain, and sourcing and procurement services; sales and commercial, and marketing and experience services; and environmental, social and governance services. The company was founded in 1997 and is based in Hamilton, Bermuda.

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.