Critical Review: National Research (NRCIA) versus Its Rivals

National Research (NASDAQ: NRCIA) is one of 97 public companies in the “Business Support Services” industry, but how does it contrast to its rivals? We will compare National Research to similar companies based on the strength of its analyst recommendations, valuation, institutional ownership, profitability, earnings, risk and dividends.

Dividends

National Research pays an annual dividend of $0.40 per share and has a dividend yield of 1.1%. National Research pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Business Support Services” companies pay a dividend yield of 1.1% and pay out 27.0% of their earnings in the form of a dividend.

Valuation and Earnings

This table compares National Research and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
National Research $109.38 million $20.51 million 70.00
National Research Competitors $1.28 billion $103.17 million 1,318.25

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

Analyst Recommendations

This is a summary of current ratings and target prices for National Research and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Research 0 1 0 0 2.00
National Research Competitors 659 1836 2731 68 2.42

National Research presently has a consensus target price of $44.00, indicating a potential upside of 25.71%. As a group, “Business Support Services” companies have a potential upside of 4.08%. Given National Research’s higher possible upside, equities research analysts clearly believe National Research is more favorable than its rivals.

Risk & Volatility

National Research has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, National Research’s rivals have a beta of 1.11, meaning that their average stock price is 11% more volatile than the S&P 500.

Institutional & Insider Ownership

25.4% of National Research shares are owned by institutional investors. Comparatively, 62.6% of shares of all “Business Support Services” companies are owned by institutional investors. 37.5% of National Research shares are owned by company insiders. Comparatively, 12.7% of shares of all “Business Support Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares National Research and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Research 19.09% 30.84% 21.29%
National Research Competitors -36.81% -18.40% 1.48%

Summary

National Research rivals beat National Research on 8 of the 15 factors compared.

National Research Company Profile

National Research Corporation, doing business as NRC Health, is a provider of analytics and insights for healthcare providers, payers and other healthcare organizations. The Company operates through six segments: Experience, The Governance Institute, Market Insights, Transparency, National Research Corporation Canada and Connect. The Company’s portfolio of subscription-based solutions provides information and analysis to healthcare organizations and payers across a range of constituent-related elements, including patient experience and satisfaction, community population health risks, workforce engagement, community perceptions and physician engagement. NRC Health partners with clients across the range of healthcare services. The Company’s clients range from integrated health systems and post-acute providers, such as home health, long-term care and hospice, to payer organizations. NRC Health’s portfolio of solutions is designed to help healthcare companies.

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