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

Dividends

Symantec pays an annual dividend of $0.30 per share and has a dividend yield of 1.5%. Nutanix does not pay a dividend. Symantec pays out 31.6% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Symantec 25.52% 14.54% 4.42%
Nutanix -25.72% -95.75% -23.28%

Institutional and Insider Ownership

92.3% of Symantec shares are owned by institutional investors. Comparatively, 49.4% of Nutanix shares are owned by institutional investors. 1.3% of Symantec shares are owned by company insiders. Comparatively, 19.8% of Nutanix 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.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Symantec $4.85 billion 2.57 $1.16 billion $0.95 21.09
Nutanix $1.16 billion 8.33 -$297.16 million ($1.69) -33.36

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

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Symantec 3 16 4 0 2.04
Nutanix 0 3 16 0 2.84

Symantec presently has a consensus target price of $24.55, indicating a potential upside of 22.49%. Nutanix has a consensus target price of $60.65, indicating a potential upside of 7.57%. Given Symantec’s higher possible upside, analysts plainly believe Symantec is more favorable than Nutanix.

Risk and Volatility

Symantec has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Nutanix has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500.

Summary

Symantec beats Nutanix on 11 of the 16 factors compared between the two stocks.

Symantec Company Profile

Symantec Corporation, together with its subsidiaries, provides cybersecurity solutions worldwide. It operates through two segments, Consumer Digital Safety and Enterprise Security. The Consumer Digital Safety segment provides Norton-branded services that provide multi-layer security services across desktop and mobile operating systems, public Wi-Fi connections, and home networks to defend against online threats to individuals, families, and small businesses. This segment also offers LifeLock-branded identity protection services, such as identifying and notifying users of identity-related and other events, and assisting users in remediating their impact; and digital safety platform designed to protect information across devices, customer identities, and the connected homes and families. The Enterprise Security segment provides endpoint protection products, endpoint management, messaging protection products, information protection products, cyber security services, Website security, and advanced Web and cloud security offerings. Its enterprise endpoint, network security, and management offerings supports evolving endpoints and networks, as well as provides an integrated cyber defense platform. This segment delivers its solutions through various methods, such as software, appliance, software-as-a-service, and managed services. The company serves individuals, households, and small businesses; small, medium, and large enterprises; and government and public sector customers. It markets and sells its products and related services through direct sales force, direct marketing and co-marketing programs, e-commerce and telesales platforms, distributors, Internet-based resellers, system builders, Internet service providers, employee benefits providers, wireless carriers, retailers, original equipment manufacturers, and retail and online stores. Symantec Corporation was founded in 1982 and is headquartered in Mountain View, California.

Nutanix Company Profile

Nutanix, Inc. develops and provides an enterprise cloud operating system software. It offers enterprise applications, virtual desktop infrastructure, virtualization and cloud, big data, remote and branch office IT, and data protection and disaster recovery solutions; and hardware platforms and software options; and support and services. The company's products include Acropolis, a hyperconverged infrastructure solution to run any application; Prism, an infrastructure management solution with one-click operations; Nutanix Calm, an application-centric IT automation solution; Xi cloud services; Nutanix Xpress that eliminates the need for clunky SANs, expensive hypervisor licensing, and complex data protection and management software; and tools and technologies. It serves education, energy and utilities, financial services, healthcare, retail, and service provider industries, as well as state and local government, and the United States federal government. Nutanix, Inc. was founded in 2009 and is headquartered in San Jose, California.

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