NIC (NASDAQ: EGOV) and Youku Tudou (NASDAQ:YOKU) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitabiliy, risk, valuation and earnings.

Earnings & Valuation

This table compares NIC and Youku Tudou’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
NIC $327.22 million 3.25 $83.34 million $0.84 19.11
Youku Tudou N/A N/A N/A N/A N/A

NIC has higher revenue and earnings than Youku Tudou.

Dividends

NIC pays an annual dividend of $0.32 per share and has a dividend yield of 2.0%. Youku Tudou does not pay a dividend. NIC pays out 38.1% of its earnings in the form of a dividend.

Institutional and Insider Ownership

92.8% of NIC shares are held by institutional investors. 4.1% of NIC shares are held 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.

Profitability

This table compares NIC and Youku Tudou’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NIC 17.31% 38.37% 23.00%
Youku Tudou -23.48% -12.96% -9.88%

Analyst Ratings

This is a breakdown of current ratings and target prices for NIC and Youku Tudou, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NIC 1 5 1 0 2.00
Youku Tudou 0 0 0 0 N/A

NIC presently has a consensus price target of $19.67, indicating a potential upside of 22.53%. Given NIC’s higher possible upside, equities research analysts plainly believe NIC is more favorable than Youku Tudou.

Summary

NIC beats Youku Tudou on 9 of the 10 factors compared between the two stocks.

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.

About Youku Tudou

Youku Tudou Inc. is an Internet television company in the People’s Republic of China. The Company’s Youku and Tudou platforms enable users to search, view and share video content across multiple devices. Its monthly visitors from home and office personal computer (PC) users numbered approximately 256 million and 169 million for Youku platform and Tudou platform, respectively. Through its Youku and Tudou platforms, it has built an online video content library. The videos accessible on its two platforms are produced content, such as television serial dramas, movies, variety shows, current events reports and music videos. The remaining content consists of user-generated content and in-house productions. The Company licenses professionally produced video content at fixed rates for a specified term. The terms of its licenses vary depending on the type of content and producer, though the terms for television serial dramas and movies range from six months to ten years.

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