Critical Analysis: NIC (EGOV) and DIGIPATH INC/SH SH (DIGP)
NIC (NASDAQ:EGOV) and DIGIPATH INC/SH SH (OTCMKTS:DIGP) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.
Earnings & Valuation
This table compares NIC and DIGIPATH INC/SH SH’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NIC||$336.51 million||2.64||$51.61 million||$0.77||17.30|
|DIGIPATH INC/SH SH||$2.84 million||2.62||-$1.65 million||N/A||N/A|
This is a breakdown of current ratings and price targets for NIC and DIGIPATH INC/SH SH, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|DIGIPATH INC/SH SH||0||0||0||0||N/A|
NIC presently has a consensus price target of $15.50, indicating a potential upside of 16.37%. Given NIC’s higher possible upside, equities analysts plainly believe NIC is more favorable than DIGIPATH INC/SH SH.
Volatility & Risk
NIC has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, DIGIPATH INC/SH SH has a beta of 2.8, suggesting that its share price is 180% more volatile than the S&P 500.
NIC pays an annual dividend of $0.32 per share and has a dividend yield of 2.4%. DIGIPATH INC/SH SH does not pay a dividend. NIC pays out 41.6% of its earnings in the form of a dividend.
This table compares NIC and DIGIPATH INC/SH SH’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|DIGIPATH INC/SH SH||-58.20%||-126.57%||-103.96%|
Insider and Institutional Ownership
89.4% of NIC shares are held by institutional investors. Comparatively, 0.5% of DIGIPATH INC/SH SH shares are held by institutional investors. 4.1% of NIC shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
NIC beats DIGIPATH INC/SH SH on 10 of the 12 factors compared between the two stocks.
NIC Inc., together with its subsidiaries, provides digital government services that enable governments to use technology to provide various services to businesses and citizens in the United States. The company's outsourced portal business enters into long-term contracts with state and local governments to design, build, and operate Internet-based and enterprise-wide portals on their behalf. Its portals consist of Websites and applications that enable businesses and citizens to access government information online and secure transactions, such as applying for a permit, retrieving government records, or filing a government-mandated form or report. The company's portal service offerings include motor vehicle driver history record retrieval; vehicle title, lien, and registration; motor vehicle inspections; temporary vehicle tags; driver's license renewal; hunting and fishing licenses; health professional license services; professional license renewal; business registrations and renewals; secretary of state business searches; Uniform Commercial Code (UCC) searches and filings; limited criminal history searches; court services; vital records; income and property tax payments; and payment processing products and services. Its software & services business provides software development and payment processing services to state and local governments, as well as federal agencies. In addition, the company develops and manages the pre-employment screening program for motor carriers using transaction-based business model. Further, it offers consulting, application development, and portal management services to governments. NIC Inc. was founded in 1991 and is based in Olathe, Kansas.
About DIGIPATH INC/SH SH
Digipath, Inc., together with its subsidiaries, provides cannabis related testing services in the United States. The company offers cannabis lab testing services in Las Vegas to Nevada licensed medical marijuana enterprises. It also provides a balanced and unbiased approach to cannabis news, interviews, and education with a news/talk radio show, app, national marijuana news Website, and social media presence focusing on the political, economic, medicinal, scientific, and cultural dimensions of medicinal and recreational marijuana industry. DigiPath, Inc. was incorporated in 2010 and is headquartered in Las Vegas, Nevada.
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