Nuance Communications (OTCMKTS: DSNY) and Destiny Media Technologies (OTCMKTS:DSNY) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Insider and Institutional Ownership

88.7% of Nuance Communications shares are owned by institutional investors. 1.2% of Nuance Communications shares are owned by company insiders. Comparatively, 27.6% of Destiny Media Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and target prices for Nuance Communications and Destiny Media Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nuance Communications 0 3 4 0 2.57
Destiny Media Technologies 0 0 0 0 N/A

Nuance Communications presently has a consensus target price of $19.67, suggesting a potential upside of 19.19%. Given Nuance Communications’ higher possible upside, research analysts plainly believe Nuance Communications is more favorable than Destiny Media Technologies.

Valuation and Earnings

This table compares Nuance Communications and Destiny Media Technologies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nuance Communications $1.98 billion 2.39 -$150.99 million $0.60 27.50
Destiny Media Technologies $3.44 million 3.68 $280,000.00 N/A N/A

Destiny Media Technologies has lower revenue, but higher earnings than Nuance Communications.

Profitability

This table compares Nuance Communications and Destiny Media Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nuance Communications -9.55% 9.67% 3.26%
Destiny Media Technologies 15.96% 26.90% 22.77%

Volatility & Risk

Nuance Communications has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Destiny Media Technologies has a beta of 2.05, indicating that its share price is 105% more volatile than the S&P 500.

Summary

Destiny Media Technologies beats Nuance Communications on 7 of the 12 factors compared between the two stocks.

Nuance Communications Company Profile

Nuance Communications, Inc. provides voice recognition and natural language understanding solutions worldwide. It operates through four segments: Healthcare, Mobile, Enterprise, and Imaging. The Healthcare segment offers transcription solutions, which enable physicians to streamline clinical documentation with medical transcription platform; Dragon Medical, a dictation software that empowers physicians to capture and document patient care on various devices; clinical document improvement and coding solutions that ensure patient health information; diagnostic solutions that allow radiologists to document, collaborate, and share medical images and reports; and professional and personal productivity solutions to business users and consumers. The Mobile segment provides virtual assistants and connected services built on voice recognition, text-to-speech, natural language understanding, dialog, and text input technologies to automotive manufacturers, consumer electronic companies, and mobile and cable operators. The Enterprise segment offers On-Premise solutions and services, an automated customer service solution comprising speech recognition, voice biometrics, transcription, text-to-speech, and dialog and analytics products; and On-Demand multichannel cloud, a platform that offers enterprises the ability to implement automatic customer service. The Imaging segment provides multi-function printer (MFP) Scan automation solutions to offer scanning and document management solutions; MFP Print automation solutions to deliver printing and document management solutions; and PDF and OCR software, a technology that enables the capture, creation, and management of document workflows. The company has a strategic agreement with Partners HealthCare and SDL plc. The company was formerly known as ScanSoft, Inc. and changed its name to Nuance Communications, Inc. in October 2005. Nuance Communications, Inc. was founded in 1992 and is headquartered in Burlington, Massachusetts.

Destiny Media Technologies Company Profile

Destiny Media Technologies Inc., through its subsidiary, Destiny Software Productions Inc., develops and markets software as a service solutions for the distribution and promotion of digital media content over the Internet in the United States, Canada, Europe, Asia, South America, Africa, and Australia. It primarily develops technologies, which allow the distribution of digital media files either in a streaming or digital download format. The company offers Play MPE, a digital distribution service for broadcast audio, video, images, promotional information, and other digital content through the Internet. Its Play MPE is used by the recording industry for transferring pre-release broadcast music, radio shows, and music videos to trusted recipients, such as radio stations, media reviewers, VIP's, DJ's, film and TV personnel, sports stadiums, and retailers. It also provides Clipstream online video platform for encoding, hosting, and reporting on video playback that can be embedded in third party Websites or emails; and playback is through Clipstream JavaScript codec engine. Destiny Media Technologies Inc. was founded in 1991 and is headquartered in Vancouver, Canada.

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