Gen Digital Inc. (GEN) vs Nutanix (NTNX)

Gen Digital Inc. and Nutanix are both Software Infrastructure companies. Nutanix is the larger, with a market value of $18.9B against $14.9B — 1.3× the size. Nutanix trades at the lower P/E: 12.0× against 13.9×. Gen Digital Inc. grew revenue faster over the last twelve months: 20.2% against 12.4%. Nutanix has the higher net margin (52.8% vs 20.7%) and the lower return on invested capital (0.00% vs 12.9%). Across the 22 metrics below, Gen Digital Inc. leads on 11 and Nutanix on 11.

Valuation

Metric GEN NTNX Software Infrastructure median
P/E 13.89 12.02 28.38
P/S 2.85 6.30 2.98
P/B 5.45 25.60 2.93
Price to free cash flow 9.28 21.39 16.28
EV/EBITDA 8.45 48.49 13.92
EV/Sales 4.34 5.95 2.90
Earnings yield 7.20% 8.32% 0.14%
Free cash flow yield 10.78% 4.67% 1.24%

Profitability

Metric GEN NTNX Software Infrastructure median
Gross margin 78.01% 86.80% 61.00%
Operating margin 41.68% 9.60% 0.00%
Net margin 20.73% 52.81% 0.00%
Free cash flow margin 30.71% 29.46% 1.67%
Return on equity 41.94% 37,461.61% 0.60%
Return on assets 6.58% 36.06% 0.00%
Return on invested capital 12.91% 0.00% 0.00%

Growth

Metric GEN NTNX Software Infrastructure median
Revenue growth (TTM) 20.16% 12.44% 13.41%
EPS growth (last fiscal year) 52.43% 695.38% 27.10%
Revenue growth, 5-year CAGR 14.41% 15.40% 15.57%
Net income growth, 5-year CAGR 11.92% 0.00% 0.00%

Health

Metric GEN NTNX Software Infrastructure median
Debt to equity 3.07 1.92 0.05
Current ratio 0.47 1.80 1.55
Net debt to EBITDA 2.98 (2.89) 0.08

Dividend

Metric GEN NTNX Software Infrastructure median
Dividend yield 2.07% — 1.20%
Payout ratio 0.29 — 0.29

Size

Metric GEN NTNX Software Infrastructure median
Market cap 14.86b 18.93b 752.37m

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