Analyzing Nice (NICE) and Nuance Communications (NUAN)

Nice (NASDAQ: NICE) and Nuance Communications (NASDAQ:NUAN) are both mid-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.

Volatility and Risk

Nice has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Nuance Communications has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Nice and Nuance Communications, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nice 0 8 1 0 2.11
Nuance Communications 0 1 6 1 3.00

Nice currently has a consensus price target of $83.50, indicating a potential downside of 3.18%. Nuance Communications has a consensus price target of $21.00, indicating a potential upside of 42.47%. Given Nuance Communications’ stronger consensus rating and higher probable upside, analysts clearly believe Nuance Communications is more favorable than Nice.

Dividends

Nice pays an annual dividend of $0.13 per share and has a dividend yield of 0.2%. Nuance Communications does not pay a dividend. Nice pays out 8.9% of its earnings in the form of a dividend.

Insider & Institutional Ownership

44.9% of Nice shares are held by institutional investors. Comparatively, 86.4% of Nuance Communications shares are held by institutional investors. 0.0% of Nice shares are held by company insiders. Comparatively, 1.7% of Nuance Communications shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Nice and Nuance Communications’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Nice $1.02 billion 5.10 $116.92 million $1.46 59.07
Nuance Communications $1.98 billion 2.15 -$12.45 million ($0.24) -61.41

Nice has higher revenue, but lower earnings than Nuance Communications. Nuance Communications is trading at a lower price-to-earnings ratio than Nice, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Nice and Nuance Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nice 7.12% 9.71% 5.72%
Nuance Communications -3.38% 14.73% 4.83%

Summary

Nuance Communications beats Nice on 9 of the 17 factors compared between the two stocks.

Nice Company Profile

NICE Ltd., formerly NICE-Systems Ltd., is a global enterprise software provider. The Company’s segments include Customer Interactions Solutions, and Financial Crime and Compliance Solutions. The Customer Interactions Solutions segment provides data driven insights that enable businesses to deliver personalized experience to customers. The Financial Crime and Compliance Solutions segment provides real time and cross-channel fraud prevention, anti-money laundering, brokerage compliance and enterprise-wide case management. The Company serves contact centers, back office operations and retail branches, covering various industries, including communications, banking, insurance, healthcare, business processes outsourcing (BPO), government, utilities, travel and entertainment. Its Multi-Channel Recording and Interaction Management enables organizations to capture structured and unstructured customer interaction and transaction data from multiple channels.

Nuance Communications Company Profile

Nuance Communications, Inc. is a provider of voice recognition and natural language understanding solutions. The Company’s segments include Healthcare, Mobile, Enterprise and Imaging. The Healthcare segment provides clinical speech and clinical language understanding solutions. The solutions for the Healthcare segment include transcription solutions, Dragon Medical, and clinical document improvement (CDI) and coding solutions. Its Mobile segment provides a portfolio of specialized virtual assistants and connected services. The Enterprise segment provides automated customer solutions and services. The solutions for the Enterprise segment include On-Premise solutions and services, and On-Demand multichannel cloud. The Imaging segment provides software solutions that help professionals and organizations to gain control of their document and information processes. Imaging segment include multi-function printer (MFP) scan automation solutions and MFP Print automation solutions.

Receive News & Ratings for Nice Ltd Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Nice Ltd and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply