Nice (NASDAQ: NICE) and Gigamon (NYSE:GIMO) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.

Analyst Ratings

This is a summary of recent ratings and target prices for Nice and Gigamon, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nice 0 5 3 0 2.38
Gigamon 0 9 1 0 2.10

Nice presently has a consensus price target of $87.71, indicating a potential downside of 5.31%. Gigamon has a consensus price target of $45.35, indicating a potential upside of 17.79%. Given Gigamon’s higher probable upside, analysts clearly believe Gigamon is more favorable than Nice.

Institutional and Insider Ownership

45.0% of Nice shares are held by institutional investors. Comparatively, 97.9% of Gigamon shares are held by institutional investors. 0.0% of Nice shares are held by company insiders. Comparatively, 4.5% of Gigamon shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Nice pays an annual dividend of $0.13 per share and has a dividend yield of 0.1%. Gigamon does not pay a dividend. Nice pays out 8.9% of its earnings in the form of a dividend.

Profitability

This table compares Nice and Gigamon’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nice 7.12% 9.71% 5.72%
Gigamon -0.32% -0.55% -0.38%

Valuation and Earnings

This table compares Nice and Gigamon’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nice $1.02 billion 5.48 $116.92 million $1.46 63.45
Gigamon $310.86 million 4.62 $49.43 million ($0.04) -962.50

Nice has higher revenue and earnings than Gigamon. Gigamon is trading at a lower price-to-earnings ratio than Nice, indicating that it is currently the more affordable of the two stocks.

Summary

Nice beats Gigamon on 11 of the 15 factors compared between the two stocks.

Nice Company Profile

NICE Ltd., formerly NICE-Systems Ltd., is a global enterprise software provider. The Company’s segments include Customer Interactions Solutions, and Financial Crime and Compliance Solutions. The Customer Interactions Solutions segment provides data driven insights that enable businesses to deliver personalized experience to customers. The Financial Crime and Compliance Solutions segment provides real time and cross-channel fraud prevention, anti-money laundering, brokerage compliance and enterprise-wide case management. The Company serves contact centers, back office operations and retail branches, covering various industries, including communications, banking, insurance, healthcare, business processes outsourcing (BPO), government, utilities, travel and entertainment. Its Multi-Channel Recording and Interaction Management enables organizations to capture structured and unstructured customer interaction and transaction data from multiple channels.

Gigamon Company Profile

Gigamon Inc. offers a solution that delivers visibility and control of data-in-motion traversing enterprise, federal and service provider networks. The Company’s Visibility Platform consists of a distributed system of nodes (that in combination establish a Visibility Fabric). The Visibility Platform includes physical appliances and virtual nodes that can be deployed in data centers, central offices, virtualized/private cloud/public cloud environments, and small form-factor remote site appliances, which in combination enable pervasive visibility of network infrastructures. Its GigaSECURE Security Delivery Platform enables security teams and information technology (IT) personnel to gain visibility into their IT infrastructure by forwarding selected traffic of interest from network, server and remote location infrastructure to security, management, analysis and compliance tools in a manner that is optimized for specific uses or functions.

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