Head-To-Head Comparison: NIC (EGOV) & Its Rivals
NIC (NASDAQ: EGOV) is one of 45 publicly-traded companies in the “Internet Services” industry, but how does it compare to its peers? We will compare NIC to related businesses based on the strength of its dividends, risk, valuation, analyst recommendations, earnings, profitability and institutional ownership.
Volatility & Risk
NIC has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500. Comparatively, NIC’s peers have a beta of 1.43, suggesting that their average share price is 43% more volatile than the S&P 500.
This table compares NIC and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
93.3% 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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a breakdown of current recommendations for NIC and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NIC presently has a consensus price target of $19.33, suggesting a potential upside of 19.34%. As a group, “Internet Services” companies have a potential upside of 2.90%. Given NIC’s higher possible upside, equities research analysts plainly believe NIC is more favorable than its peers.
Valuation and Earnings
This table compares NIC and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|NIC||$317.92 million||$55.83 million||20.00|
|NIC Competitors||$954.98 million||$110.67 million||672.67|
NIC’s peers have higher revenue and earnings than NIC. NIC is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
NIC pays an annual dividend of $0.32 per share and has a dividend yield of 2.0%. 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 3.5% and pay out 45.5% of their earnings in the form of a dividend.
NIC peers beat NIC on 10 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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