Financial Analysis: NCI (NCIT) & Its Peers

NCI (NASDAQ: NCIT) is one of 180 publicly-traded companies in the “IT Services & Consulting” industry, but how does it contrast to its peers? We will compare NCI to related businesses based on the strength of its institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Risk & Volatility

NCI has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, NCI’s peers have a beta of 1.13, indicating that their average share price is 13% more volatile than the S&P 500.

Institutional & Insider Ownership

38.6% of NCI shares are held by institutional investors. Comparatively, 63.0% of shares of all “IT Services & Consulting” companies are held by institutional investors. 45.4% of NCI shares are held by company insiders. Comparatively, 16.5% of shares of all “IT Services & Consulting” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for NCI and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NCI 0 3 1 0 2.25
NCI Competitors 729 4635 7373 163 2.54

NCI presently has a consensus price target of $18.33, suggesting a potential downside of 8.33%. As a group, “IT Services & Consulting” companies have a potential upside of 3.82%. Given NCI’s peers stronger consensus rating and higher possible upside, analysts clearly believe NCI has less favorable growth aspects than its peers.

Profitability

This table compares NCI and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NCI 2.53% 8.07% 5.69%
NCI Competitors -18.93% -257.14% -2.94%

Earnings & Valuation

This table compares NCI and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
NCI N/A N/A 47.62
NCI Competitors $2.79 billion $289.83 million 370.34

NCI’s peers have higher revenue and earnings than NCI. NCI is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

NCI peers beat NCI on 7 of the 11 factors compared.

About NCI

NCI, Inc. is a provider of enterprise services and solutions to defense, intelligence, healthcare and civilian government agencies. The Company provides information technology (IT), and professional services and solutions by leveraging its core service offerings, which include cloud computing and IT infrastructure optimization; cybersecurity and information assurance; engineering and logistics support; enterprise information management and advanced analytics; health IT and medical support; IT service management; modeling, simulation, and training, and agile development and integration. The Company helps its clients to navigate the range of cloud, Everything-as-a-Service (EaaS), capacity services and virtualization options available. The Company provides its customers the full lifecycle of cybersecurity services, including policy and planning, compliance, identity and access management, training, education, awareness and enterprise security operations.

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