Critical Review: Nutanix (NASDAQ:NTNX) versus Bottomline Technologies (NASDAQ:EPAY)
Nutanix (NASDAQ:NTNX) and Bottomline Technologies (NASDAQ:EPAY) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.
Volatility & Risk
Nutanix has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, Bottomline Technologies has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.
This table compares Nutanix and Bottomline Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
64.5% of Nutanix shares are held by institutional investors. Comparatively, 87.6% of Bottomline Technologies shares are held by institutional investors. 9.8% of Nutanix shares are held by company insiders. Comparatively, 2.6% of Bottomline Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a breakdown of recent ratings and target prices for Nutanix and Bottomline Technologies, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Nutanix currently has a consensus price target of $40.53, suggesting a potential upside of 14.18%. Bottomline Technologies has a consensus price target of $60.30, suggesting a potential upside of 19.45%. Given Bottomline Technologies’ higher probable upside, analysts plainly believe Bottomline Technologies is more favorable than Nutanix.
Earnings and Valuation
This table compares Nutanix and Bottomline Technologies’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Nutanix||$1.24 billion||5.52||-$621.18 million||($3.18)||-11.16|
|Bottomline Technologies||$421.96 million||5.26||$9.43 million||$0.97||52.04|
Bottomline Technologies has lower revenue, but higher earnings than Nutanix. Nutanix is trading at a lower price-to-earnings ratio than Bottomline Technologies, indicating that it is currently the more affordable of the two stocks.
Bottomline Technologies beats Nutanix on 8 of the 14 factors compared between the two stocks.
Nutanix, Inc., together with its subsidiaries, develops and provides an enterprise cloud platform in North America, Europe, the Asia Pacific, the Middle East, Latin America, and Africa. Its solution addresses a range of workloads, including enterprise applications, databases, virtual desktop infrastructure, unified communications, and big data analytics. The company offers Acropolis, an open platform comprising hyperconvergence, native virtualization, enterprise storage, virtual networking, and platform services; and Prism, an end-to-end consumer-grade management plane providing management and analytics across its software products and services. It also provides Nutanix Calm that offers native application orchestration, automation, and lifecycle management to its enterprise cloud platform. In addition, the company offers Beam, a multi-cloud optimization service; and Frame, a desktop-as-a-service. It serves customers in a range of industries, including automotive, consumer goods, education, energy, financial services, healthcare, manufacturing, media, public sector, retail, technology, and telecommunications, as well as service providers. The company was founded in 2009 and is headquartered in San Jose, California.
About Bottomline Technologies
Bottomline Technologies (de), Inc. provides software as a service based solutions. It operates through four segments: Cloud Solutions, Banking Solutions, Payments and Transactional Documents, and Other. The company's products and services include Paymode-X, a cloud-based payment network, which allows businesses to transition to electronic integrated payables; and cloud-based financial messaging solutions that enable banks and corporations to exchange financial information, such as payment instructions, cash reporting, and other messages to facilitate transaction settlement. It also provides digital banking solutions that provide payments, cash management, and online banking solutions to financial institutions; and cloud-based legal spend management solutions and services that integrate with claims management, and time and billing systems to automate legal invoice management processes. In addition, the company offers cyber fraud and risk management solutions that monitor, replay, and analyze user behavior and payment transactions to flag and stop suspicious activity in real time; and payment and document automation solutions to automate a range of business documents and supply chain processes, as well as related Web-based delivery and document archive. Further, it provides healthcare solutions for patient registration, electronic signature, mobile document, and payments; and consulting, project implementation, and training services, as well as sells printers, check papers, and magnetic ink character recognition toners. The company serves customers in the banking, financial services, insurance, healthcare, technology, retail, communications, education, media, manufacturing, and government industries in the United States, the United Kingdom, Continental Europe, the Asia-Pacific, and the Middle East. Bottomline Technologies (de), Inc. was founded in 1989 and is headquartered in Portsmouth, New Hampshire.
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