Comprehensive Stock Comparison
Compare Nutanix, Inc. (NTNX) vs Microsoft Corporation (MSFT) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | NTNX | 18.1% revenue growth vs MSFT's 14.9% |
| Value | NTNX | Lower P/E (21.1x vs 23.8x) |
| Quality / Margins | MSFT | 39.0% net margin vs NTNX's 9.9% |
| Stability / Safety | MSFT | Beta 0.88 vs NTNX's 1.25 |
| Dividends | MSFT | 0.8% yield; 19-year raise streak; NTNX pays no meaningful dividend |
| Momentum (1Y) | MSFT | -0.2% vs NTNX's -50.2% |
| Efficiency (ROA) | MSFT | 17.9% ROA vs NTNX's 8.2%, ROIC 27.9% vs 6.9% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Nutanix provides a hyperconverged infrastructure platform that combines computing, storage, and virtualization into a single software solution. It generates revenue primarily through subscription software licenses — about 90% of total revenue — with the remainder from hardware sales and support services. The company's key advantage is its software-defined architecture that simplifies data center management and enables seamless hybrid cloud operations.
Microsoft is a global technology company that develops software, cloud services, and hardware products. It generates revenue primarily through cloud services like Azure (~40% of revenue), productivity software including Office 365 and Dynamics, and personal computing through Windows licensing and Surface devices. Its key competitive advantage is the deeply entrenched enterprise ecosystem—Windows and Office dominance creates a powerful network effect that drives adoption of its cloud and productivity suites.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
MSFT leads in 2 of 6 categories (Total Returns, Risk & Volatility). NTNX leads in 1 (Valuation Metrics). 2 tied.
Financial Metrics (TTM)
MSFT is the larger business by revenue, generating $305.5B annually — 113.7x NTNX's $2.7B. MSFT is the more profitable business, keeping 39.0% of every revenue dollar as net income compared to NTNX's 9.9%. On growth, MSFT holds the edge at +16.7% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | NTNXNutanix, Inc. | MSFTMicrosoft Corpora… |
|---|---|---|
| RevenueTrailing 12 months | $2.7B | $305.5B |
| EBITDAEarnings before interest/tax | $288M | $184.8B |
| Net IncomeAfter-tax profit | $267M | $119.3B |
| Free Cash FlowCash after capex | $777M | $77.4B |
| Gross MarginGross profit ÷ Revenue | +87.1% | +68.6% |
| Operating MarginEBIT ÷ Revenue | +8.0% | +46.7% |
| Net MarginNet income ÷ Revenue | +9.9% | +39.0% |
| FCF MarginFCF ÷ Revenue | +28.9% | +25.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +10.4% | +16.7% |
| EPS Growth (YoY)Latest quarter vs prior year | +89.5% | +59.8% |
Valuation Metrics
At 28.8x trailing earnings, MSFT trades at a 51% valuation discount to NTNX's 58.9x P/E. On an enterprise value basis, MSFT's 18.1x EV/EBITDA is more attractive than NTNX's 45.2x.
| Metric | NTNXNutanix, Inc. | MSFTMicrosoft Corpora… |
|---|---|---|
| Market CapShares × price | $10.4B | $2.92T |
| Enterprise ValueMkt cap + debt − cash | $11.1B | $2.95T |
| Trailing P/EPrice ÷ TTM EPS | 58.89x | 28.79x |
| Forward P/EPrice ÷ next-FY EPS est. | 21.13x | 23.84x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.53x |
| EV / EBITDAEnterprise value multiple | 45.16x | 18.12x |
| Price / SalesMarket cap ÷ Revenue | 4.08x | 10.36x |
| Price / BookPrice ÷ Book value/share | — | 8.54x |
| Price / FCFMarket cap ÷ FCF | 13.81x | 40.74x |
Profitability & Efficiency
| Metric | NTNXNutanix, Inc. | MSFTMicrosoft Corpora… |
|---|---|---|
| ROE (TTM)Return on equity | — | +30.5% |
| ROA (TTM)Return on assets | +8.2% | +17.9% |
| ROICReturn on invested capital | +6.9% | +27.9% |
| ROCEReturn on capital employed | +12.5% | +29.7% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 6 |
| Debt / EquityFinancial leverage | — | 0.18x |
| Net DebtTotal debt minus cash | $713M | $30.3B |
| Cash & Equiv.Liquid assets | $770M | $30.2B |
| Total DebtShort + long-term debt | $1.5B | $60.6B |
| Interest CoverageEBIT ÷ Interest expense | 12.48x | 56.44x |
Total Returns (with DRIP)
A $10,000 investment in MSFT five years ago would be worth $17,186 today (with dividends reinvested), compared to $12,465 for NTNX. Over the past 12 months, MSFT leads with a -0.2% total return vs NTNX's -50.2%. The 3-year compound annual growth rate (CAGR) favors MSFT at 17.3% vs NTNX's 10.7% — a key indicator of consistent wealth creation.
| Metric | NTNXNutanix, Inc. | MSFTMicrosoft Corpora… |
|---|---|---|
| YTD ReturnYear-to-date | -24.3% | -16.8% |
| 1-Year ReturnPast 12 months | -50.2% | -0.2% |
| 3-Year ReturnCumulative with dividends | +35.5% | +61.3% |
| 5-Year ReturnCumulative with dividends | +24.6% | +71.9% |
| 10-Year ReturnCumulative with dividends | +3.5% | +718.2% |
| CAGR (3Y)Annualised 3-year return | +10.7% | +17.3% |
Risk & Volatility
MSFT is the less volatile stock with a 0.88 beta — it tends to amplify market swings less than NTNX's 1.25 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. MSFT currently trades 70.7% from its 52-week high vs NTNX's 45.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | NTNXNutanix, Inc. | MSFTMicrosoft Corpora… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.25x | 0.88x |
| 52-Week HighHighest price in past year | $83.36 | $555.45 |
| 52-Week LowLowest price in past year | $35.39 | $344.79 |
| % of 52W HighCurrent price vs 52-week peak | +45.9% | +70.7% |
| RSI (14)Momentum oscillator 0–100 | 43.7 | 39.8 |
| Avg Volume (50D)Average daily shares traded | 3.5M | 28.4M |
Analyst Outlook
Wall Street rates NTNX as "Buy" and MSFT as "Buy". Consensus price targets imply 58.2% upside for NTNX (target: $61) vs 48.6% for MSFT (target: $584). MSFT is the only dividend payer here at 0.82% yield — a key consideration for income-focused portfolios.
| Metric | NTNXNutanix, Inc. | MSFTMicrosoft Corpora… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $60.55 | $583.67 |
| # AnalystsCovering analysts | 31 | 78 |
| Dividend YieldAnnual dividend ÷ price | — | +0.8% |
| Dividend StreakConsecutive years of raises | — | 19 |
| Dividend / ShareAnnual DPS | — | $3.23 |
| Buyback YieldShare repurchases ÷ mkt cap | +3.0% | +0.6% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| Nutanix, Inc. (NTNX) | 100 | 168.2 | +68.2% |
| Microsoft Corporati… (MSFT) | 100 | 261.32 | +161.3% |
Microsoft Corporati… (MSFT) returned +72% over 5 years vs Nutanix, Inc. (NTNX)'s +25%. A $10,000 investment in MSFT 5 years ago would be worth $17,186 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Nutanix, Inc. (NTNX) | $503M | $2.5B | +404.1% |
| Microsoft Corporati… (MSFT) | $91.2B | $281.7B | +209.1% |
Nutanix, Inc.'s revenue grew from $503M (2016) to $2.5B (2025) — a 19.7% CAGR. Microsoft Corporation's revenue grew from $91.2B (2016) to $281.7B (2025) — a 13.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Nutanix, Inc. (NTNX) | -21.5% | 7.4% | +134.5% |
| Microsoft Corporati… (MSFT) | 22.5% | 36.1% | +60.4% |
Nutanix, Inc.'s net margin went from -22% (2016) to 7% (2025). Microsoft Corporation's net margin went from 23% (2016) to 36% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Microsoft Corporati… (MSFT) | 26.3 | 35.5 | +35.0% |
Microsoft Corporation has traded in a 25x–48x P/E range over 9 years; current trailing P/E is ~29x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Nutanix, Inc. (NTNX) | -0.79 | 0.65 | +182.3% |
| Microsoft Corporati… (MSFT) | 2.1 | 13.64 | +549.5% |
Nutanix, Inc.'s EPS grew from $-0.79 (2016) to $0.65 (2025). Microsoft Corporation's EPS grew from $2.10 (2016) to $13.64 (2025) — a 23% CAGR.
Chart 6Free Cash Flow — 5 Years
Nutanix, Inc. generated $750M FCF in 2025 (+573% vs 2021). Microsoft Corporation generated $72B FCF in 2025 (+28% vs 2021).
NTNX vs MSFT: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is NTNX or MSFT a better buy right now?
Microsoft Corporation (MSFT) offers the better valuation at 28.8x trailing P/E (23.8x forward), making it the more compelling value choice. Analysts rate Nutanix, Inc. (NTNX) a "Buy" — based on 31 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — NTNX or MSFT?
On trailing P/E, Microsoft Corporation (MSFT) is the cheapest at 28.8x versus Nutanix, Inc. at 58.9x. On forward P/E, Nutanix, Inc. is actually cheaper at 21.1x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — NTNX or MSFT?
Over the past 5 years, Microsoft Corporation (MSFT) delivered a total return of +71.9%, compared to +24.6% for Nutanix, Inc. (NTNX). A $10,000 investment in MSFT five years ago would be worth approximately $17K today (assuming dividends reinvested). Over 10 years, the gap is even starker: MSFT returned +718.2% versus NTNX's +3.5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — NTNX or MSFT?
By beta (market sensitivity over 5 years), Microsoft Corporation (MSFT) is the lower-risk stock at 0.88β versus Nutanix, Inc.'s 1.25β — meaning NTNX is approximately 41% more volatile than MSFT relative to the S&P 500.
05Which has better profit margins — NTNX or MSFT?
Microsoft Corporation (MSFT) is the more profitable company, earning 36.1% net margin versus 7.4% for Nutanix, Inc. — meaning it keeps 36.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MSFT leads at 45.6% versus 6.8% for NTNX. At the gross margin level — before operating expenses — NTNX leads at 86.8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is NTNX or MSFT more undervalued right now?
On forward earnings alone, Nutanix, Inc. (NTNX) trades at 21.1x forward P/E versus 23.8x for Microsoft Corporation — 2.7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NTNX: 58.2% to $60.55.
07Which pays a better dividend — NTNX or MSFT?
In this comparison, MSFT (0.8% yield) pays a dividend. NTNX does not pay a meaningful dividend and should not be held primarily for income.
08Is NTNX or MSFT better for a retirement portfolio?
For long-horizon retirement investors, Microsoft Corporation (MSFT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.88), 0.8% yield, +718.2% 10Y return). Both have compounded well over 10 years (MSFT: +718.2%, NTNX: +3.5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between NTNX and MSFT?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. MSFT pays a dividend while NTNX does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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