Analyzing Nutanix (NASDAQ:NTNX) & BlackBerry (NYSE:BB)

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

Insider and Institutional Ownership

54.5% of BlackBerry shares are owned by institutional investors. Comparatively, 85.3% of Nutanix shares are owned by institutional investors. 0.5% of BlackBerry shares are owned by insiders. Comparatively, 2.4% of Nutanix shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares BlackBerry and Nutanix”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BlackBerry	$549.10 million	8.29	$53.20 million	$0.09	86.18
Nutanix	$2.85 billion	6.41	$1.51 billion	$5.16	13.12

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BlackBerry	10.31%	11.66%	7.07%
Nutanix	52.81%	-90.13%	9.09%

Analyst Recommendations

This is a breakdown of recent recommendations for BlackBerry and Nutanix, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BlackBerry	1	8	2	0	2.09
Nutanix	0	9	9	0	2.50

BlackBerry presently has a consensus price target of $8.92, indicating a potential upside of 15.04%. Nutanix has a consensus price target of $72.71, indicating a potential upside of 7.42%. Given BlackBerry’s higher probable upside, research analysts clearly believe BlackBerry is more favorable than Nutanix.

Risk and Volatility

BlackBerry has a beta of 2.23, indicating that its share price is 123% more volatile than the S&P 500. Comparatively, Nutanix has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.

Summary

Nutanix beats BlackBerry on 9 of the 14 factors compared between the two stocks.

About BlackBerry

BlackBerry Limited provides intelligent security software and services to enterprises and governments worldwide. The company operates through three segments: Cybersecurity, IoT, and Licensing and Other. The company offers CylanceENDPOINT, an integrated endpoint security solution; CylanceGUARD, a managed detection and response solution; CylanceEDGE, an AI-powered continuous authentication zero trust network access solution; CylanceINTELLIGENCE, a contextual cyber threat intelligence service; BlackBerry Dynamics offers a development platform and secure container for mobile applications; BlackBerry Workspaces a secure Enterprise File Sync and Share (EFSS) solution; BlackBerry Messenger (BBM) Enterprise, an enterprise-grade secure instant messaging solution for messaging, voice and video; BlackBerry SecuSUITE is a certified, multi-OS voice and text messaging solution; BlackBerry AtHoc, a secure networked critical event management solution; and BlackBerry unified endpoint management (UEM) solutions. It also provides BlackBerry Technology Solutions (BTS); BlackBerry Certicom, a patented elliptic curve cryptography, which provides device security, anti-counterfeiting and product authentication solutions; BlackBerry Radar offers monitoring and telematics solutions; BlackBerry Professional; and cyber security consulting services. In addition, the company is involved in the patent licensing and legacy service access fees business. The company was formerly known as Research In Motion Limited and changed its name to BlackBerry Limited in July 2013. BlackBerry Limited was incorporated in 1984 and is headquartered in Waterloo, Canada.

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.