Nuance Communications (NASDAQ: NUAN) and Park City Group (NASDAQ:PCYG) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.
Institutional & Insider Ownership
84.8% of Nuance Communications shares are held by institutional investors. Comparatively, 31.2% of Park City Group shares are held by institutional investors. 1.2% of Nuance Communications shares are held by company insiders. Comparatively, 37.4% of Park City Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Nuance Communications and Park City Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Nuance Communications||$1.98 billion||2.51||-$150.99 million||($0.53)||-31.87|
|Park City Group||$18.94 million||8.99||$3.77 million||$0.13||67.31|
Park City Group has lower revenue, but higher earnings than Nuance Communications. Nuance Communications is trading at a lower price-to-earnings ratio than Park City Group, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Nuance Communications has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Park City Group has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.
This is a summary of current ratings for Nuance Communications and Park City Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Park City Group||0||0||2||0||3.00|
Nuance Communications presently has a consensus price target of $20.86, indicating a potential upside of 23.49%. Park City Group has a consensus price target of $16.50, indicating a potential upside of 88.57%. Given Park City Group’s higher possible upside, analysts clearly believe Park City Group is more favorable than Nuance Communications.
This table compares Nuance Communications and Park City Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Park City Group||17.98%||10.33%||8.19%|
Park City Group beats Nuance Communications on 9 of the 14 factors compared between the two stocks.
About Nuance Communications
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.
About Park City Group
Park City Group, Inc. is a software-as-a-service (SaaS) provider. The Company delivers its services through software products designed, developed, marketed and supported by the Company. The Company also has a Professional Services business, which conducts customization, implementation and training. The Company has approximately two services groups, such as The Business Analytics Group and The Professional Services Group. The Business Analytics Group offers business-consulting services to suppliers and retailers in the grocery, convenience store and specialty retail industries. The Professional Services Group provides consulting services. The Company’s solutions include Advanced Commerce and Supply-Chain Solutions, and Food Safety Solutions. The Company’s primary advanced commerce and supply-chain solutions include Scan Based Trading, ScoreTracker, Vendor Managed Inventory, Store Level Replenishment, Enterprise Supply Chain Planning, Fresh Market Manager and ActionManager.
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