NIC (NASDAQ: EGOV) is one of 46 public companies in the “Internet Services” industry, but how does it compare to its competitors? We will compare NIC to similar companies based on the strength of its earnings, valuation, analyst recommendations, institutional ownership, dividends, profitability and risk.

Analyst Recommendations

This is a summary of recent ratings and target prices 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 417 1632 2746 93 2.51

NIC presently has a consensus target price of $19.33, suggesting a potential upside of 21.21%. As a group, “Internet Services” companies have a potential upside of 3.14%. Given NIC’s higher possible upside, research analysts plainly believe NIC is more favorable than its competitors.

Earnings & Valuation

This table compares NIC and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
NIC $317.92 million $55.83 million 19.69
NIC Competitors $954.98 million $110.67 million 664.34

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.

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 1.43% 37.97% 7.54%

Institutional and Insider Ownership

93.3% of NIC shares are held by institutional investors. Comparatively, 73.6% of shares of all “Internet Services” companies are held by institutional investors. 4.1% of NIC shares are held by insiders. Comparatively, 20.9% of shares of all “Internet Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

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.

Risk & Volatility

NIC has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500. Comparatively, NIC’s competitors have a beta of 1.43, meaning that their average stock price is 43% more volatile than the S&P 500.

Summary

NIC competitors beat NIC on 10 of the 15 factors compared.

About NIC

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.

Receive News & Stock Ratings for NIC Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NIC Inc. and related stocks with our FREE daily email newsletter.