Nutanix (NASDAQ: NTNX) and Cornerstone OnDemand (NASDAQ:CSOD) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitabiliy and analyst recommendations.

Institutional and Insider Ownership

19.2% of Nutanix shares are owned by institutional investors. Comparatively, 90.5% of Cornerstone OnDemand shares are owned by institutional investors. 12.6% of Cornerstone OnDemand shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Nutanix -61.32% -5,196.17% -47.92%
Cornerstone OnDemand -15.39% -182.51% -8.45%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Nutanix and Cornerstone OnDemand, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nutanix 1 5 14 1 2.71
Cornerstone OnDemand 2 4 6 1 2.46

Nutanix presently has a consensus price target of $31.17, indicating a potential upside of 42.25%. Cornerstone OnDemand has a consensus price target of $44.33, indicating a potential upside of 26.70%. Given Nutanix’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Nutanix is more favorable than Cornerstone OnDemand.

Earnings and Valuation

This table compares Nutanix and Cornerstone OnDemand’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Nutanix $680.55 million 4.88 -$351.39 million N/A N/A
Cornerstone OnDemand $435.38 million 4.57 -$41.77 million ($1.21) -28.92

Cornerstone OnDemand has higher revenue, but lower earnings than Nutanix.

Summary

Cornerstone OnDemand beats Nutanix on 6 of the 11 factors compared between the two stocks.

About Nutanix

Nutanix, Inc. is a United States-based company, which provides an enterprise cloud platform that converges silos of server, virtualization and storage into an integrated solution. The Company’s enterprise cloud platform connects to public cloud services. It has operations in the United States; Europe, the Middle East and Africa; Asia-Pacific, and Other Americas. Its solution consists of software product families, including Acropolis and Prism. Its solution is delivered on commodity x86 servers. Acropolis includes its Distributed Storage Fabric that delivers enterprise-grade data management features. Acropolis also includes a built-in hypervisor, and its Application Mobility Fabric that enables application placement, conversion and migration across various hypervisors, and between public and private clouds. Prism delivers integrated virtualization and infrastructure management, operational analytics and a suite of one-click administration capabilities.

About Cornerstone OnDemand

Cornerstone OnDemand, Inc. is a cloud computing company. The Company provides learning and human capital management software, delivered as Software-as-a-Service (SaaS). Its human capital management platform combines the talent management solutions with analytics and human resources (HR) administration solutions to enable organizations to manage the employee lifecycle. Its enterprise human capital management platform consists of four product suites: its Recruiting suite, which helps organizations to source and attract candidates, assess and select applicants, onboard new hires and manage the entire recruiting process; its Learning suite, which enables clients to manage training and development programs; its Performance suite, which provides tools to manage goal setting, performance reviews, compensation management and succession planning, and HR Administration suite, which supports employee records administration, workforce planning and compliance reporting.

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