Financial Analysis: Nuance Communications (NUAN) vs. its Rivals
Nuance Communications (NASDAQ: NUAN) is one of 113 public companies in the “Software” industry, but how does it compare to its rivals? We will compare Nuance Communications to related businesses based off the strength of its analyst recommendations, valuation, profitability, dividends, institutional ownership, earnings and risk.
Insider & Institutional Ownership
84.3% of Nuance Communications shares are owned by institutional investors. Comparatively, 58.1% of shares of all “Software” companies are owned by institutional investors. 1.7% of Nuance Communications shares are owned by company insiders. Comparatively, 19.9% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Nuance Communications has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Nuance Communications’ rivals have a beta of 0.98, indicating that their average share price is 2% less volatile than the S&P 500.
This table compares Nuance Communications and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Nuance Communications Competitors||-24.79%||-44.12%||-9.23%|
This is a summary of recent ratings and price targets for Nuance Communications and its rivals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Nuance Communications Competitors||388||2280||4325||113||2.59|
Nuance Communications currently has a consensus price target of $21.00, suggesting a potential upside of 34.79%. All “Software” companies have a potential upside of 14.19%. Given Nuance Communications’ stronger consensus rating and higher probable upside, equities analysts plainly believe Nuance Communications is more favorable than its rivals.
Valuation and Earnings
This table compares Nuance Communications and its rivals gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Nuance Communications||$1.98 billion||$406.34 million||-64.91|
|Nuance Communications Competitors||$1.57 billion||$460.85 million||43.53|
Nuance Communications has higher revenue, but lower earnings than its rivals. Nuance Communications is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently the more affordable than other companies in its industry.
Nuance Communications beats its rivals on 9 of the 12 factors compared.
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.
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