Contrasting Nutanix (NASDAQ:NTNX) and Bentley Systems (NASDAQ:BSY)

Bentley Systems (NASDAQ:BSY) and Nutanix (NASDAQ:NTNX) are both large-cap technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for Bentley Systems and Nutanix, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bentley Systems	0	5	9	1	2.73
Nutanix	0	9	9	0	2.50

Bentley Systems currently has a consensus price target of $44.38, indicating a potential upside of 26.92%. Nutanix has a consensus price target of $73.07, indicating a potential downside of 2.09%. Given Bentley Systems’ stronger consensus rating and higher possible upside, analysts plainly believe Bentley Systems is more favorable than Nutanix.

Insider and Institutional Ownership

44.2% of Bentley Systems shares are held by institutional investors. Comparatively, 85.3% of Nutanix shares are held by institutional investors. 20.3% of Bentley Systems shares are held by insiders. Comparatively, 2.4% of Nutanix shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bentley Systems	18.10%	28.43%	9.69%
Nutanix	52.81%	-90.13%	9.09%

Risk and Volatility

Bentley Systems has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Nutanix has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bentley Systems	$1.50 billion	6.77	$277.86 million	$0.91	38.43
Nutanix	$2.85 billion	7.08	$1.51 billion	$5.16	14.46

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

Summary

Bentley Systems beats Nutanix on 8 of the 14 factors compared between the two stocks.

About Bentley Systems

Bentley Systems, Incorporated, together with its subsidiaries, provides infrastructure engineering software solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company offers open modeling engineering applications, such as MicroStation, OpenBridge, OpenBuildings, OpenCities, OpenComms, OpenFlows, OpenPlant, OpenRail, OpenRoads, OpenSite, OpenTower, OpenTunnel, OpenUtilities, and OpenWindowPower; and open simulation engineering applications, including ADINA, AutoPIPE, CUBE, DYNAMEQ, EMME, LEGION, Power Line Systems, RAM, SACS, SPIDA, and STAAD; and geoprofessional applications for modeling and simulation of near and deep subsurface conditions, including AGS, Central, GeoStudio, Imago, Leapfrog, MX Deposit, Oasis montaj, OpenGround, and PLAXIS. It also provides infrastructure cloud applications, such as ProjectWise, SYNCHRO, and AssetWise, as well as iTwin platform that enables users to create and curate cloud native 4D/5D digital representations of physical infrastructure assets consisting of iTwin Capture, iTwin Experience, and iTwin IoT platforms. The company serves civil, structural, geotechnical, subsurface, process engineers, architects, geospatial professionals, city and regional planners, contractors, fabricators, and operations and maintenance engineers. Bentley Systems, Incorporated was incorporated in 1984 and is headquartered in Exton, Pennsylvania.

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.