NIC (NASDAQ: EGOV) is one of 44 public companies in the “Internet Services” industry, but how does it weigh in compared to its competitors? We will compare NIC to similar businesses based on the strength of its earnings, risk, analyst recommendations, dividends, institutional ownership, profitability and valuation.

Earnings & Valuation

This table compares NIC and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
NIC $317.92 million $55.83 million 20.49
NIC Competitors $1.03 billion $122.81 million -1,668.16

NIC’s competitors have higher revenue and earnings than NIC. NIC 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.

Profitability

This table compares NIC and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NIC 16.59% 35.88% 22.04%
NIC Competitors 2.28% 44.26% 8.94%

Risk and Volatility

NIC has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500. Comparatively, NIC’s competitors have a beta of 1.43, indicating that their average stock price is 43% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for NIC and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NIC 1 5 1 0 2.00
NIC Competitors 408 1612 2723 92 2.52

NIC presently has a consensus target price of $19.33, suggesting a potential upside of 16.47%. As a group, “Internet Services” companies have a potential downside of 73.46%. Given NIC’s higher possible upside, analysts clearly believe NIC is more favorable than its competitors.

Insider & Institutional Ownership

93.4% of NIC shares are owned by institutional investors. Comparatively, 73.6% of shares of all “Internet Services” companies are owned by institutional investors. 4.1% of NIC shares are owned by insiders. Comparatively, 20.9% of shares of all “Internet Services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

NIC pays an annual dividend of $0.32 per share and has a dividend yield of 1.9%. NIC pays out 39.5% of its earnings in the form of a dividend. As a group, “Internet Services” companies pay a dividend yield of 3.2% and pay out 45.5% of their earnings in the form of a dividend.

Summary

NIC competitors beat NIC on 9 of the 15 factors compared.

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.

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