Financial Survey: NIC (EGOV) & Liberty Tripadvisor (LTRPA)

NIC (NASDAQ: EGOV) and Liberty Tripadvisor (NASDAQ:LTRPA) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, earnings, analyst recommendations, institutional ownership and profitability.

Insider and Institutional Ownership

92.6% of NIC shares are owned by institutional investors. Comparatively, 86.8% of Liberty Tripadvisor shares are owned by institutional investors. 4.1% of NIC shares are owned by insiders. Comparatively, 4.0% of Liberty Tripadvisor shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for NIC and Liberty Tripadvisor, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NIC 1 4 1 0 2.00
Liberty Tripadvisor 0 0 0 0 N/A

NIC presently has a consensus price target of $19.33, suggesting a potential upside of 45.36%. Given NIC’s higher probable upside, equities research analysts clearly believe NIC is more favorable than Liberty Tripadvisor.

Earnings & Valuation

This table compares NIC and Liberty Tripadvisor’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NIC $336.51 million 2.62 $55.83 million $0.77 17.27
Liberty Tripadvisor $1.53 billion 0.43 $21.00 million $0.10 87.50

NIC has higher earnings, but lower revenue than Liberty Tripadvisor. NIC is trading at a lower price-to-earnings ratio than Liberty Tripadvisor, indicating that it is currently the more affordable of the two stocks.

Dividends

NIC pays an annual dividend of $0.32 per share and has a dividend yield of 2.4%. Liberty Tripadvisor does not pay a dividend. NIC pays out 41.6% of its earnings in the form of a dividend.

Profitability

This table compares NIC and Liberty Tripadvisor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NIC 15.34% 34.14% 20.84%
Liberty Tripadvisor 0.44% 0.13% 0.10%

Summary

NIC beats Liberty Tripadvisor on 11 of the 14 factors compared between the two stocks.

NIC Company Profile

NIC Inc. is a provider of digital government services that help governments use technology to provide services to businesses and citizens. The Company operates through Outsourced Portals segment. The Company offers its services through two channels: primary outsourced portal businesses, and software and services businesses. In the primary outsourced portal businesses, the Company enters into contracts with state and local governments to design, build, and operate Internet-based, enterprise-wide portals on their behalf. Its software and services businesses include its subsidiaries that provide software development and payment processing services, other than outsourced portal services, to state and local governments, as well as federal agencies. The Company’s outsourced portal businesses include interactive government services (IGS), driver history records (DHR), Portal software development and services, and Portal management.

Liberty Tripadvisor Company Profile

Liberty TripAdvisor Holdings, Inc. is a holding company. Through its interests in subsidiaries and other companies, the Company is primarily engaged in the online travel research and online commerce industries. The Company’s subsidiaries include TripAdvisor, Inc. (TripAdvisor), which owns and operates a portfolio of online travel brands, and BuySeasons, Inc., which owns and operates BuyCostumes.com and the Celebrate Express (BuySeasons) family of Websites. TripAdvisor is a travel site focusing on helping people around the world to plan and book a trip. TripAdvisor manages its business in two segments: Hotel, including click-based advertising, display-based advertising and subscription-based advertising, and Non-Hotel, including its attractions, restaurants and vacation rental businesses. BuySeasons is an online retailer and supplier of costumes, accessories, seasonal decor and party supplies.

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