Critical Analysis: eFuture Holding (EFUT) versus Nice Systems (NICE)
eFuture Holding (NASDAQ: EFUT) and Nice Systems (NASDAQ:NICE) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.
Insider and Institutional Ownership
1.6% of eFuture Holding shares are owned by institutional investors. Comparatively, 43.8% of Nice Systems shares are owned by institutional investors. 0.0% of Nice Systems shares are owned by company 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.
Risk and Volatility
eFuture Holding has a beta of -0.26, meaning that its stock price is 126% less volatile than the S&P 500. Comparatively, Nice Systems has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.
Valuation & Earnings
This table compares eFuture Holding and Nice Systems’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Nice Systems||$617.16 million||7.80||$129.93 million||$1.54||51.81|
Nice Systems has higher revenue and earnings than eFuture Holding. eFuture Holding is trading at a lower price-to-earnings ratio than Nice Systems, indicating that it is currently the more affordable of the two stocks.
This table compares eFuture Holding and Nice Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and target prices for eFuture Holding and Nice Systems, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Nice Systems has a consensus target price of $80.43, suggesting a potential upside of 0.81%. Given Nice Systems’ higher possible upside, analysts plainly believe Nice Systems is more favorable than eFuture Holding.
Nice Systems pays an annual dividend of $0.26 per share and has a dividend yield of 0.3%. eFuture Holding does not pay a dividend. Nice Systems pays out 16.9% of its earnings in the form of a dividend.
Nice Systems beats eFuture Holding on 11 of the 12 factors compared between the two stocks.
eFuture Holding Company Profile
eFuture Holding Inc., formerly eFuture Information Technology Inc., is a holding company. The Company is a software and solution provider and a mobile business enabler to China’s retail and consumer goods industries. All of the Company’s operations are conducted through its Chinese subsidiary, eFuture (Beijing) Royalstone Information Technology Inc. (eFuture Beijing). The Company caters to manufacturers, distributors, resellers, logistics companies and retailers. Its software professional service includes delivery services, recurring maintenance services and offers support service system. The Company’s software solutions are specifically designed to optimize demand processes from factory to consumer, and to address supply chain management (SCM), business processes, decision support, inventory optimization, collaborative planning and forecasting requirements. Its Omni-channel solutions business includes a series of omni-channel cloud services. Its Omni-channel solutions offer myStore.
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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