Analyzing Nutanix (NASDAQ:NTNX) & Tyler Technologies (NYSE:TYL)

Tyler Technologies (NYSE:TYL) 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 risk, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.

Institutional & Insider Ownership

93.3% of Tyler Technologies shares are held by institutional investors. Comparatively, 85.3% of Nutanix shares are held by institutional investors. 1.1% of Tyler Technologies shares are held by insiders. Comparatively, 2.4% of Nutanix shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tyler Technologies	13.36%	11.15%	7.14%
Nutanix	52.81%	-90.13%	9.09%

Volatility and Risk

Tyler Technologies has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Nutanix has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Tyler Technologies and Nutanix, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tyler Technologies	1	3	13	1	2.78
Nutanix	0	9	9	0	2.50

Tyler Technologies presently has a consensus price target of $456.72, suggesting a potential upside of 31.21%. Nutanix has a consensus price target of $72.71, suggesting a potential upside of 7.74%. Given Tyler Technologies’ stronger consensus rating and higher possible upside, research analysts plainly believe Tyler Technologies is more favorable than Nutanix.

Valuation & Earnings

This table compares Tyler Technologies and Nutanix”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tyler Technologies	$2.33 billion	6.11	$315.60 million	$7.54	46.17
Nutanix	$2.85 billion	6.39	$1.51 billion	$5.16	13.08

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

Summary

Tyler Technologies beats Nutanix on 9 of the 15 factors compared between the two stocks.

About Tyler Technologies

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector. It operates in two segments, Enterprise Software and Platform Technologies. The company offers platform and transformative technology solutions, including cybersecurity for government agencies; data and insights solutions; digital solutions that helps workers and policymakers to share, communicate, and leverage data; payments solutions, such as billing, presentment, merchant onboarding, collections, reconciliation, and disbursements; platform technologies, an application development platform that enables government workers to build solutions and applications; and outdoor recreation solutions, including campsite reservations, activity registrations, licensing sales and renewals, and real-time data for conservation and park management. It also provides public administration solutions, such as civic services; financial applications with human resources, revenue management, tax billing, utilities, asset management, and payment processing; property and recording service that manages appraisal services, valuation, tax billing and collections, assessment administration, and land and official records; and permitting, licensing, and regulatory management solutions. In addition, the company offers courts and public safety solutions; school ERP and student transportation solutions for K-12 schools; and health and human services solutions. Further, the company offers software as a service arrangements and electronic document filing solutions for courts; software and hardware installation, data conversion, training, product modification, and maintenance and support services; and property appraisal outsourcing services for taxing jurisdictions. Tyler Technologies, Inc. has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. The company was founded in 1966 and is headquartered in Plano, Texas.

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.