Comparing Gigamon (GIMO) & Nice (NICE)

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

Profitability

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

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

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 8.6% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Gigamon and Nice’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gigamon $310.86 million 0.00 $49.43 million ($0.04) N/A
Nice $1.02 billion 5.56 $116.92 million $1.52 61.82

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.

Insider & Institutional Ownership

97.9% of Gigamon shares are owned by institutional investors. Comparatively, 45.0% of Nice shares are owned by institutional investors. 4.5% of Gigamon shares are owned by company insiders. Comparatively, 0.0% of Nice shares are owned 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.

Analyst Ratings

This is a breakdown of current recommendations for Gigamon and Nice, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gigamon 0 9 1 0 2.10
Nice 0 7 2 0 2.22

Gigamon currently has a consensus target price of $45.35, indicating a potential upside of Infinity. Nice has a consensus target price of $86.25, indicating a potential downside of 8.22%. Given Gigamon’s higher probable upside, analysts plainly believe Gigamon is more favorable than Nice.

Summary

Nice beats Gigamon on 10 of the 14 factors compared between the two stocks.

About Gigamon

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.

About Nice

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.

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