Nutanix (NASDAQ:NTNX) versus Docusign (DOCU) Financial Survey

Nutanix (NASDAQ:NTNX) and Docusign (NASDAQ:DOCU) are both mid-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.

Earnings & Valuation

This table compares Nutanix and Docusign’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nutanix $1.16 billion 6.75 -$297.16 million ($1.69) -25.35
Docusign $700.97 million 12.80 -$426.46 million ($2.90) -18.20

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

Insider and Institutional Ownership

54.9% of Nutanix shares are owned by institutional investors. Comparatively, 53.3% of Docusign shares are owned by institutional investors. 14.6% of Nutanix shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Nutanix -31.41% -90.83% -20.40%
Docusign -60.84% -86.06% -30.84%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Nutanix and Docusign, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nutanix 1 7 13 0 2.57
Docusign 0 4 8 0 2.67

Nutanix presently has a consensus price target of $54.69, suggesting a potential upside of 27.66%. Docusign has a consensus price target of $61.55, suggesting a potential upside of 16.59%. Given Nutanix’s higher probable upside, equities research analysts plainly believe Nutanix is more favorable than Docusign.

Summary

Nutanix beats Docusign on 9 of the 13 factors compared between the two stocks.

About Nutanix

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 Docusign

DocuSign, Inc. provides cloud based transaction products and services in the United States. The company offers e-signature solution that enables businesses to digitally prepare, execute, and act on agreements. It serves large enterprises, sole proprietorships, small- to medium-sized businesses, professionals, and individuals. The company was 2003 and is headquartered in San Francisco, California.

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