Nice Systems (NASDAQ: NICE) is one of 118 public companies in the “Software” industry, but how does it contrast to its competitors? We will compare Nice Systems to related companies based on the strength of its profitability, institutional ownership, dividends, analyst recommendations, valuation, earnings and risk.

Institutional & Insider Ownership

43.8% of Nice Systems shares are held by institutional investors. Comparatively, 58.4% of shares of all “Software” companies are held by institutional investors. 0.0% of Nice Systems shares are held by insiders. Comparatively, 20.0% of shares of all “Software” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Nice Systems and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nice Systems 0 6 3 0 2.33
Nice Systems Competitors 262 1998 4255 84 2.63

Nice Systems currently has a consensus target price of $80.88, indicating a potential downside of 0.84%. As a group, “Software” companies have a potential upside of 4.50%. Given Nice Systems’ competitors stronger consensus rating and higher possible upside, analysts clearly believe Nice Systems has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares Nice Systems and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Nice Systems $1.18 billion $250.82 million 52.96
Nice Systems Competitors $1.49 billion $438.76 million 40.78

Nice Systems’ competitors have higher revenue and earnings than Nice Systems. Nice Systems is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

Nice Systems has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Nice Systems’ competitors have a beta of 0.98, suggesting that their average share price is 2% less volatile than the S&P 500.

Dividends

Nice Systems pays an annual dividend of $0.26 per share and has a dividend yield of 0.3%. Nice Systems pays out 16.9% of its earnings in the form of a dividend. As a group, “Software” companies pay a dividend yield of 1.0% and pay out 62.6% of their earnings in the form of a dividend.

Profitability

This table compares Nice Systems and its competitors’ 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%
Nice Systems Competitors -43.44% -25.23% -9.94%

Summary

Nice Systems competitors beat Nice Systems on 10 of the 15 factors compared.

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.

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