Nice Systems (NASDAQ: NICE) is one of 118 public companies in the “Software” industry, but how does it contrast to its peers? We will compare Nice Systems to similar companies based on the strength of its dividends, institutional ownership, profitability, analyst recommendations, risk, valuation and earnings.

Profitability

This table compares Nice Systems and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nice Systems 7.99% 11.14% 6.91%
Nice Systems Competitors -42.00% -25.23% -9.84%

Dividends

Nice Systems pays an annual dividend of $0.26 per share and has a dividend yield of 0.3%. Nice Systems pays out 16.9% of its earnings in the form of a dividend. As a group, “Software” companies pay a dividend yield of 1.1% and pay out 62.6% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Nice Systems and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Nice Systems N/A N/A 52.56
Nice Systems Competitors $1.51 billion $446.17 million 42.17

Nice Systems’ peers have higher revenue and earnings than Nice Systems. Nice Systems is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

Nice Systems has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Nice Systems’ peers have a beta of 0.98, indicating that their average share price is 2% less volatile than the S&P 500.

Institutional and Insider Ownership

43.8% of Nice Systems shares are owned by institutional investors. Comparatively, 61.0% of shares of all “Software” companies are owned by institutional investors. 0.0% of Nice Systems shares are owned by insiders. Comparatively, 17.8% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Nice Systems and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nice Systems 0 5 3 0 2.38
Nice Systems Competitors 389 2321 4408 115 2.59

Nice Systems presently has a consensus target price of $80.43, suggesting a potential downside of 0.63%. As a group, “Software” companies have a potential upside of 8.63%. Given Nice Systems’ peers stronger consensus rating and higher probable upside, analysts clearly believe Nice Systems has less favorable growth aspects than its peers.

Summary

Nice Systems peers beat Nice Systems on 9 of the 13 factors compared.

About Nice Systems

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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