Nuance Communications (NASDAQ:NUAN) and Endurance International Group (NASDAQ:EIGI) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.
Volatility & Risk
Nuance Communications has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Endurance International Group has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.
Institutional and Insider Ownership
90.5% of Nuance Communications shares are owned by institutional investors. Comparatively, 88.1% of Endurance International Group shares are owned by institutional investors. 0.5% of Nuance Communications shares are owned by insiders. Comparatively, 50.6% of Endurance International Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Nuance Communications and Endurance International Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Nuance Communications||$1.82 billion||2.78||$213.81 million||$0.76||23.46|
|Endurance International Group||$1.15 billion||0.60||$4.53 million||$0.03||156.67|
Nuance Communications has higher revenue and earnings than Endurance International Group. Nuance Communications is trading at a lower price-to-earnings ratio than Endurance International Group, indicating that it is currently the more affordable of the two stocks.
This table compares Nuance Communications and Endurance International Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Endurance International Group||-0.82%||13.20%||0.87%|
This is a breakdown of current ratings and recommmendations for Nuance Communications and Endurance International Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Endurance International Group||0||2||0||0||2.00|
Nuance Communications currently has a consensus price target of $19.25, suggesting a potential upside of 7.96%. Endurance International Group has a consensus price target of $6.50, suggesting a potential upside of 38.30%. Given Endurance International Group’s higher probable upside, analysts clearly believe Endurance International Group is more favorable than Nuance Communications.
Nuance Communications beats Endurance International Group on 9 of the 14 factors compared between the two stocks.
Nuance Communications Company Profile
Nuance Communications (NASDAQ: NUAN) is the pioneer and leader in conversational AI innovations that bring intelligence to everyday work and life. The company delivers solutions that understand, analyze, and respond to people – amplifying human intelligence to increase productivity and security. With decades of domain and AI expertise, Nuance works with thousands of organizations globally across healthcare, financial services, telecommunications, government, and retail – to create stronger relationships and better experiences for their customers and workforce. For more information, please visit www.nuance.com.
Endurance International Group Company Profile
Endurance International Group Holdings, Inc., together with its subsidiaries, provides cloud-based platform solutions for small-and medium-sized businesses in the United States and internationally. The company operates in three segments: Web Presence, Domain, and Email Marketing. It offers Web hosting services, including entry-level shared hosting, and virtual private server and dedicated hosting solutions; Website building tools that enable subscribers to create a Web presence; domain registration, management, and resale services; malware protection solutions to protect subscribers’ Websites from viruses, malicious code, and other threats; and backup control solutions that enable subscribers to schedule, maintain, manage, and restore backups of their online data and Websites. The company also provides solutions that allow subscribers to have their Websites rendered on mobile devices; search engine optimization and marketing solutions; tools and services that enable subscribers to communicate with their customers and potential customers through social networks; and control panels and dashboards that offer subscribers with tools to analyze activity on their Websites. In addition, it offers email marketing solutions that enable subscribers to communicate with their customers and potential customers through email; email capabilities, including custom mailboxes that reflect a subscriber’s domain name, spam filters, email aliases, and forwarding functionality; email, collaboration, and file sharing tools; products that enable secure and encrypted payments, shopping carts, payment processing and related services, and mobile payments; platform that creates and manages digital storefront listings through one interface; and professional services and Web design services. The company also offers Blue Flash, which offers personal guidance and helps users to build their Websites. The company was founded in 1997 and is headquartered in Burlington, Massachusetts.
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