Karooooo (NASDAQ:KARO – Get Free Report) and NiCE (NASDAQ:NICE – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.
Risk and Volatility
Karooooo has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, NiCE has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.
Valuation & Earnings
This table compares Karooooo and NiCE”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Karooooo | $249.96 million | 5.63 | $50.38 million | $1.79 | 25.47 |
| NiCE | $2.88 billion | 2.57 | $442.59 million | $8.80 | 13.30 |
NiCE has higher revenue and earnings than Karooooo. NiCE is trading at a lower price-to-earnings ratio than Karooooo, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
63.3% of NiCE shares are owned by institutional investors. 74.7% of Karooooo shares are owned by company insiders. Comparatively, 0.0% of NiCE shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Karooooo and NiCE’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Karooooo | 19.90% | 31.64% | 20.03% |
| NiCE | 19.48% | 17.71% | 12.40% |
Analyst Recommendations
This is a summary of current ratings and target prices for Karooooo and NiCE, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Karooooo | 0 | 2 | 4 | 0 | 2.67 |
| NiCE | 2 | 5 | 8 | 0 | 2.40 |
Karooooo currently has a consensus target price of $58.25, suggesting a potential upside of 27.77%. NiCE has a consensus target price of $159.77, suggesting a potential upside of 36.47%. Given NiCE’s higher probable upside, analysts clearly believe NiCE is more favorable than Karooooo.
Summary
Karooooo beats NiCE on 8 of the 14 factors compared between the two stocks.
About Karooooo
Karooooo Ltd. provides mobility software-as-a-service (SaaS) platform for connected vehicles in South Africa, rest of Africa, Europe, the Asia-Pacific, the Middle East, and the United States. The company offers Fleet Telematics, a fleet management SaaS platform that provides real-time insights; LiveVision, which offers pro-active risk management and fleet visibility; MiFleet advanced fleet administration and business intelligence that provides cost management and administration capability services; and Karooooo Logistics, a software application for management of last mile delivery and general operational logistics. It provides Cartrack Field Service, a software application for management of field and on site workers; Business Intelligence for high-level view of fleet statistics; asset tracking for tracking and tracing moveable assets; asset recovery services that assists vehicle owners and insurance companies with the recovery of vehicles and other assets; and insurance telematics that allows insurers to tailor premiums for commercial and consumer customers using analytics; Protector, a safety package for consumer vehicles; and Car Watch, a mobile application that lets users track and watch their vehicles. In addition, the company offers specialist mobility solutions that include Bike Track, a GPS-based solution for commercial motorbike fleets; Credit Management that predicts payment cycles and facilitate active credit management for asset-based vehicle finance; electronic monitoring services application that allows law enforcement agencies to monitor persons of interest; and mobility and monitoring solutions, such as Carzuka, cartrack insurance agency, and on-demand rideshare taxi application, as well as smart IoT products. It provides its solutions through direct sales force to consumers and sole proprietors, small and medium-sized businesses, large enterprises, and other connected devices. Karooooo Ltd. was founded in 2001 and is headquartered in Singapore.
About NiCE
NiCE Ltd., together with its subsidiaries, provides cloud platforms for AI-driven digital business solutions worldwide. It offers CXone, a cloud native open platform; Enlighten, an AI engine for the customer engagement market; and smart self-service enables organizations to address consumers’ needs; and journey orchestration solutions that empower organizations to connect and route customers to deal with the customer’s request, and connects them using real-time AI-based routing. The company provides smart self service solutions that empower organizations to build intelligent automated conversations based on data; and prepared agent solutions and tools enable contact center agents to guide and alert them in real time; provides solutions that help organizations to record structured and unstructured customer interaction and transaction data; and NiCE Evidencentral, an digital evidence management platform for public safety emergency communications, law enforcement, and criminal justice helps agencies. In addition, it offers X-Sight, is an open and flexible AI-cloud platform for financial crime and compliance; Xceed, a cloud platform for comprehensive AML and fraud prevention for small and mid-sized organizations; data intelligence solutions that enable organizations to turn raw data into comprehensive actionable intelligence to prevent and detect financial crimes; AI and analytics technologies to detect and prevent financial crimes in real-time; money laundering and fraud prevention solutions that help organizations adhere to capital markets compliance and anti-money laundering compliance regulations; intelligent investigations solutions; and self-service solutions that provide organizations with customization and self-development capabilities. The company was formerly known as NiCE-Systems Ltd. and changed its name to NiCE Ltd. in June 2016. NiCE Ltd. was founded in 1986 and is headquartered in Ra’anana, Israel.
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