Nuance Communications (NASDAQ: NUAN) and EnerNOC (NASDAQ:ENOC) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitabiliy, analyst recommendations, institutional ownership, risk, valuation and dividends.

Earnings & Valuation

This table compares Nuance Communications and EnerNOC’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Nuance Communications $1.97 billion 2.55 $414.44 million ($0.18) -96.94
EnerNOC $398.69 million 0.57 -$245,000.00 ($1.47) -5.26

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

Risk & Volatility

Nuance Communications has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, EnerNOC has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500.

Insider and Institutional Ownership

86.0% of Nuance Communications shares are held by institutional investors. Comparatively, 49.6% of EnerNOC shares are held by institutional investors. 1.7% of Nuance Communications shares are held by insiders. Comparatively, 13.4% of EnerNOC shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Nuance Communications -2.57% 15.76% 5.16%
EnerNOC -10.51% -42.33% -11.84%

Analyst Ratings

This is a summary of current recommendations and price targets for Nuance Communications and EnerNOC, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nuance Communications 0 1 5 1 3.00
EnerNOC 0 6 0 0 2.00

Nuance Communications presently has a consensus price target of $22.67, indicating a potential upside of 29.89%. EnerNOC has a consensus price target of $8.42, indicating a potential upside of 8.96%. Given Nuance Communications’ stronger consensus rating and higher possible upside, analysts plainly believe Nuance Communications is more favorable than EnerNOC.

Summary

Nuance Communications beats EnerNOC on 13 of the 14 factors compared between the two stocks.

About Nuance Communications

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.

About EnerNOC

EnerNOC, Inc. is a provider of energy intelligence software (EIS) and demand response solutions. The Company’s EIS provides enterprise solutions, utility solutions and energy procurement solutions. The Company’s EIS offers enterprise customers with a Software-as-a-Service (SaaS) solutions with various areas of functionalities, including energy cost visualization, budgets, forecasts and accruals; project tracking, and demand management. Its EIS provides its utility customers with a SaaS-based customer engagement platform, which collects and processes data and enables its utility customers to provide personalized communication and recommendations to their customers. Its EIS includes an energy procurement platform that helps its enterprise and utility customers. Its procurement platform offers its enterprise and utility customers with features, such as energy contracts management. Its technology includes over two components: its EIS platform and Network Operations Center (NOC).

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