Qiwi (NASDAQ:QIWI) and NIC (NASDAQ:EGOV) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.
Volatility and Risk
Qiwi has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, NIC has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500.
Institutional & Insider Ownership
29.7% of Qiwi shares are held by institutional investors. Comparatively, 89.7% of NIC shares are held by institutional investors. 2.7% of NIC shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Qiwi and NIC's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Qiwi | 16.07% | 30.61% | 11.88% |
NIC | 14.94% | 23.51% | 15.34% |
Valuation & Earnings
This table compares Qiwi and NIC's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Qiwi | $635.40 million | 1.07 | $74.90 million | $1.73 | 6.26 |
NIC | $354.20 million | 6.44 | $50.43 million | $0.77 | 44.10 |
Qiwi has higher revenue and earnings than NIC. Qiwi is trading at a lower price-to-earnings ratio than NIC, indicating that it is currently the more affordable of the two stocks.
Dividends
Qiwi pays an annual dividend of $1.28 per share and has a dividend yield of 11.8%. NIC pays an annual dividend of $0.36 per share and has a dividend yield of 1.1%. Qiwi pays out 74.0% of its earnings in the form of a dividend. NIC pays out 46.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. NIC has raised its dividend for 1 consecutive years.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Qiwi and NIC, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Qiwi | 1 | 2 | 0 | 0 | 1.67 |
NIC | 1 | 2 | 0 | 1 | 2.25 |
Qiwi presently has a consensus price target of $13.25, suggesting a potential upside of 22.35%. NIC has a consensus price target of $30.50, suggesting a potential downside of 10.16%. Given Qiwi's higher probable upside, equities research analysts plainly believe Qiwi is more favorable than NIC.
Summary
NIC beats Qiwi on 9 of the 17 factors compared between the two stocks.