Nice Systems (NASDAQ: NICE) and SciQuest (NASDAQ:SQI) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.

Dividends

Nice Systems pays an annual dividend of $0.26 per share and has a dividend yield of 0.3%. SciQuest does not pay a dividend. Nice Systems pays out 16.9% of its earnings in the form of a dividend.

Insider and Institutional Ownership

43.5% of Nice Systems shares are held by institutional investors. 0.0% of Nice Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Nice Systems and SciQuest, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nice Systems 0 4 3 0 2.43
SciQuest 0 0 0 0 N/A

Nice Systems currently has a consensus price target of $80.50, suggesting a potential upside of 7.09%. Given Nice Systems’ higher possible upside, research analysts clearly believe Nice Systems is more favorable than SciQuest.

Profitability

This table compares Nice Systems and SciQuest’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nice Systems 7.99% 11.14% 6.91%
SciQuest 3.93% 2.23% 1.59%

Valuation and Earnings

This table compares Nice Systems and SciQuest’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Nice Systems N/A N/A N/A $1.54 48.81
SciQuest N/A N/A N/A $0.11 161.38

Nice Systems is trading at a lower price-to-earnings ratio than SciQuest, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Nice Systems has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, SciQuest has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500.

Summary

Nice Systems beats SciQuest on 9 of the 11 factors compared between the two stocks.

Nice Systems 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.

SciQuest Company Profile

SciQuest, Inc. is a United States-based public provider of spend management solutions. The Company’s offers a range of solutions, such as Spend Director, Spend Radar, Sourcing Director, Advanced Sourcing Optimizer, Total Contract Manager, Total Supplier Manager, Enterprise Reagent Manager, Accounts Payable Director, Supplier Network and Portfolio Savings Manager. Its Spend Director is an e-procurement software, which allows users’ to integrate and automate processes, suppliers, compliance and workflows. Its Portfolio Savings Manager is a cloud-based savings management software that integrates project forecasting, initiative approval workflows and real-time savings. Its chemical inventory management software, Enterprise Reagent Manager (ERM), allows scientific staff in the organization to find, source and track commercial and proprietary chemicals, reagents and lab supplies. Its Total Contract Manager is a Contract Lifecycle Management solution that offers real-time updates.

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