What's the preferable setup?

This makes me wonder. When there’s 2 company needs ERP System then what’s the best setup should I apply? 1 ERPNext that handles 2 company or both company has there own ERPNext System?

The thing that make me wonder, if I use the first one. Will that make a confusion for the user if there’s a transactions happening, instead that transaction if for Company A, the user did it on the Company B. For the second choice, its another hassle cuz you need to setup a new ERP System.

Each will have its own pros and cons..
One of the most important questions will be - will both companies share same chart of accounts?
If yes then use one system for both companies - users will make mistakes but a good trade off with maintaining 2 systems (e.g. 2 daily backups)

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so it will depends on the companies preference and capability?