NIC (NASDAQ: EGOV) is one of 45 public companies in the “Internet Services” industry, but how does it contrast to its competitors? We will compare NIC to similar companies based on the strength of its analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Institutional & Insider Ownership

90.0% of NIC shares are owned by institutional investors. Comparatively, 73.0% of shares of all “Internet Services” companies are owned by institutional investors. 4.1% of NIC shares are owned by company insiders. Comparatively, 20.3% of shares of all “Internet Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for NIC and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NIC 1 5 1 0 2.00
NIC Competitors 412 1613 2726 90 2.52

NIC presently has a consensus target price of $19.33, suggesting a potential upside of 15.42%. As a group, “Internet Services” companies have a potential upside of 3.22%. Given NIC’s higher possible upside, analysts clearly believe NIC is more favorable than its competitors.

Valuation & Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
NIC $317.92 million $55.83 million 20.68
NIC Competitors $991.07 million $116.17 million 669.24

NIC’s competitors have higher revenue and earnings than NIC. NIC is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

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 2.9% and pay out 45.5% of their earnings in the form of a dividend.

Risk and Volatility

NIC has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500. Comparatively, NIC’s competitors have a beta of 1.45, meaning that their average share price is 45% more volatile than the S&P 500.

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 16.42% 36.89% 22.03%
NIC Competitors 2.11% 44.27% 8.91%

Summary

NIC competitors 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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