Head-To-Head Review: Nutanix (NASDAQ:NTNX) & Tyler Technologies (NYSE:TYL)
by Tristan Rich · The Markets DailyNutanix (NASDAQ:NTNX – Get Free Report) and Tyler Technologies (NYSE:TYL – Get Free Report) are both large-cap technology companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.
Earnings & Valuation
This table compares Nutanix and Tyler Technologies”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nutanix | $2.85 billion | 6.39 | $1.51 billion | $5.16 | 13.08 |
| Tyler Technologies | $2.33 billion | 6.11 | $315.60 million | $7.54 | 46.17 |
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.
Profitability
This table compares Nutanix and Tyler Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nutanix | 52.81% | -90.13% | 9.09% |
| Tyler Technologies | 13.36% | 11.15% | 7.14% |
Insider & Institutional Ownership
85.3% of Nutanix shares are owned by institutional investors. Comparatively, 93.3% of Tyler Technologies shares are owned by institutional investors. 2.4% of Nutanix shares are owned by insiders. Comparatively, 1.1% of Tyler Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
Nutanix has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Tyler Technologies has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings for Nutanix and Tyler Technologies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nutanix | 0 | 9 | 9 | 0 | 2.50 |
| Tyler Technologies | 1 | 3 | 13 | 1 | 2.78 |
Nutanix currently has a consensus target price of $72.71, suggesting a potential upside of 7.74%. Tyler Technologies has a consensus target price of $456.72, suggesting a potential upside of 31.21%. Given Tyler Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe Tyler Technologies is more favorable than Nutanix.
Summary
Tyler Technologies beats Nutanix on 9 of the 15 factors compared between the two stocks.
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.
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.