NIC (EGOV) and Weibo Corporation (WB) Financial Analysis
NIC (NASDAQ: EGOV) and Weibo Corporation (NASDAQ:WB) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.
This table compares NIC and Weibo Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
NIC pays an annual dividend of $0.32 per share and has a dividend yield of 1.9%. Weibo Corporation does not pay a dividend. NIC pays out 38.1% of its earnings in the form of a dividend.
Volatility & Risk
NIC has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500. Comparatively, Weibo Corporation has a beta of 2.57, meaning that its stock price is 157% more volatile than the S&P 500.
Valuation and Earnings
This table compares NIC and Weibo Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|NIC||$327.22 million||3.44||$83.34 million||$0.84||20.24|
|Weibo Corporation||$842.20 million||22.37||$260.90 million||$0.87||104.47|
Weibo Corporation has higher revenue and earnings than NIC. NIC is trading at a lower price-to-earnings ratio than Weibo Corporation, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
92.9% of NIC shares are owned by institutional investors. Comparatively, 19.6% of Weibo Corporation shares are owned by institutional investors. 4.1% of NIC shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a summary of current ratings and price targets for NIC and Weibo Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NIC presently has a consensus target price of $19.33, suggesting a potential upside of 13.73%. Weibo Corporation has a consensus target price of $86.71, suggesting a potential downside of 4.59%. Given NIC’s higher possible upside, equities research analysts clearly believe NIC is more favorable than Weibo Corporation.
Weibo Corporation beats NIC on 10 of the 16 factors compared between the two stocks.
NIC Company Profile
NIC Inc. is a provider of digital government services that help governments use technology to provide services to businesses and citizens. The Company operates through Outsourced Portals segment. The Company offers its services through two channels: primary outsourced portal businesses, and software and services businesses. In the primary outsourced portal businesses, the Company enters into contracts with state and local governments to design, build, and operate Internet-based, enterprise-wide portals on their behalf. Its software and services businesses include its subsidiaries that provide software development and payment processing services, other than outsourced portal services, to state and local governments, as well as federal agencies. The Company’s outsourced portal businesses include interactive government services (IGS), driver history records (DHR), Portal software development and services, and Portal management.
Weibo Corporation Company Profile
Weibo Corporation is a social media platform for people to create, distribute and discover Chinese-language content. The Company provides ways for people and organizations to publicly express themselves in real time, interact with others on a global platform and stay connected with the world. It operates in two segments: advertising and marketing services and other services. It offers self-expression products that enable its users to express themselves on its platform; social products to promote social interaction between users on its platform; discovery products to help users discover content on its platform, and notifications to notify users on Weibo account activities through short message service (SMS) or push notification on their device. It offers advertising and marketing solutions to enable its customers to promote their brands and conduct marketing activities. It offers its platform partners with tools and application programming interfaces (APIs).
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