Destiny Media Technologies (NASDAQ: NUAN) and Nuance Communications (NASDAQ:NUAN) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Destiny Media Technologies and Nuance Communications, as reported by MarketBeat.

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

Nuance Communications has a consensus target price of $19.67, indicating a potential upside of 19.12%. Given Nuance Communications’ higher possible upside, analysts plainly believe Nuance Communications is more favorable than Destiny Media Technologies.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Destiny Media Technologies $3.44 million 4.00 $280,000.00 N/A N/A
Nuance Communications $1.98 billion 2.39 -$150.99 million $0.60 27.52

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

Profitability

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

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

Institutional & Insider Ownership

88.7% of Nuance Communications shares are held by institutional investors. 27.6% of Destiny Media Technologies shares are held by company insiders. Comparatively, 1.7% of Nuance Communications shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

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

Summary

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

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.

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.

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