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

Earnings and Valuation

This table compares NIC and its rivals top-line revenue, earnings per share 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 624.98

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.

Volatility and Risk

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

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%

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 3.1% and pay out 45.5% of their earnings in the form of a dividend.

Institutional & Insider Ownership

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for NIC and its rivals, 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 419 1638 2750 93 2.51

NIC currently has a consensus price target of $19.33, suggesting a potential upside of 5.94%. As a group, “Internet Services” companies have a potential upside of 0.27%. Given NIC’s higher probable upside, analysts plainly believe NIC is more favorable than its rivals.

Summary

NIC rivals 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.

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