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

Dividends

NIC pays an annual dividend of $0.32 per share and has a dividend yield of 1.8%. 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 3.2% and pay out 45.5% of their earnings in the form of a dividend.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
NIC $317.92 million $55.83 million 22.53
NIC Competitors $954.98 million $110.67 million 624.99

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

Profitability

This table compares NIC and its rivals’ 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 1.12% 38.85% 7.65%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for NIC and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NIC 1 5 1 0 2.00
NIC Competitors 419 1638 2750 93 2.51

NIC currently has a consensus target price of $19.33, suggesting a potential upside of 5.94%. As a group, “Internet Services” companies have a potential upside of 0.49%. Given NIC’s higher possible upside, research analysts plainly believe NIC is more favorable than its rivals.

Insider and Institutional Ownership

93.3% of NIC shares are held by institutional investors. Comparatively, 73.7% of shares of all “Internet Services” companies are held by institutional investors. 4.1% of NIC shares are held by company insiders. Comparatively, 20.9% of shares of all “Internet Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

NIC has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500. Comparatively, NIC’s rivals have a beta of 1.42, indicating that their average stock price is 42% more volatile than the S&P 500.

Summary

NIC rivals 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.

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