Head to Head Contrast: NCR (NCR) versus Diebold Nixdorf (DBD)

NCR (NYSE: NCR) and Diebold Nixdorf (NYSE:DBD) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, dividends, institutional ownership, profitability and earnings.

Analyst Ratings

This is a breakdown of current recommendations for NCR and Diebold Nixdorf, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NCR 0 3 3 0 2.50
Diebold Nixdorf 0 3 4 0 2.57

NCR presently has a consensus target price of $43.33, suggesting a potential upside of 41.10%. Diebold Nixdorf has a consensus target price of $20.80, suggesting a potential upside of 43.45%. Given Diebold Nixdorf’s stronger consensus rating and higher possible upside, analysts clearly believe Diebold Nixdorf is more favorable than NCR.

Volatility and Risk

NCR has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500. Comparatively, Diebold Nixdorf has a beta of 2.05, indicating that its share price is 105% more volatile than the S&P 500.

Institutional & Insider Ownership

93.0% of NCR shares are held by institutional investors. 1.0% of NCR shares are held by company insiders. Comparatively, 0.7% of Diebold Nixdorf shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Diebold Nixdorf pays an annual dividend of $0.40 per share and has a dividend yield of 2.8%. NCR does not pay a dividend. Diebold Nixdorf pays out 35.4% of its earnings in the form of a dividend.

Profitability

This table compares NCR and Diebold Nixdorf’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NCR 3.56% 80.11% 6.92%
Diebold Nixdorf -5.06% 14.90% 1.62%

Earnings & Valuation

This table compares NCR and Diebold Nixdorf’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NCR $6.52 billion 0.56 $232.00 million $3.20 9.60
Diebold Nixdorf $4.61 billion 0.24 -$233.10 million $1.13 12.83

NCR has higher revenue and earnings than Diebold Nixdorf. NCR is trading at a lower price-to-earnings ratio than Diebold Nixdorf, indicating that it is currently the more affordable of the two stocks.

Summary

NCR beats Diebold Nixdorf on 10 of the 16 factors compared between the two stocks.

About NCR

NCR Corporation provides omni-channel technology solutions that enable businesses connect, interact, and transact with their customers worldwide. The company's Software segment offers industry-based software platforms and applications and application suites for the financial services, retail, hospitality, and small business industries; and cash management software, video banking software, fraud and loss prevention applications, check and document imaging, remote-deposit capture, and customer-facing mobile and digital banking applications for the financial services industry. It also provides electronic and mobile payment solutions, sector-specific point of sale (POS) software applications, and back-office inventory, and store and restaurant management applications for the retail and hospitality industries; and software support and maintenance, and consulting and implementation services for its software solutions. Its Services segment offers assessment and preparation, staging, installation, implementation, and maintenance and support; and systems management and managed services for its hardware solutions, as well as installation, maintenance, and services for third party networking products and computer hardware. The company's Hardware segment offers multi-function ATMs, interactive teller machines, thin-client ATMs, cash dispensers, cash recycling ATMs, and hardware for check and image processing; financial services hardware; and POS terminals, self-checkout kiosks, order and payment kiosks, bar code scanners, printers, and peripherals to retailers, restaurants, food service companies, and entertainment and sports venues. This segment also provides self-check in/out kiosk solutions for airlines, hotels, and casinos; and wayfinding solutions, digital signage, bill payment kiosks, and gift registries, as well as resells third party networking products. The company was founded in 1884 and is headquartered in Atlanta, Georgia.

About Diebold Nixdorf

Diebold Nixdorf, Incorporated provides connected commerce solutions to financial institutions and retailers in North America, the Asia Pacific, Europe, the Middle East, Africa, and Latin America. The company operates in three segments: Services, Software, and Systems. The Services segment provides product-related services, such as first and second line maintenance, preventive maintenance, and on-demand services; and managed and outsourcing services, including store lifecycle management, self-service fleet management, branch lifecycle management, automated teller machine (ATM) as-a-service, and managed mobility services, as well as cash management services. This segment offers services to ATMs, point of sale (POS) terminals, self-checkout systems (SCO), and other distributed assets. The Software segment provides front-end applications for consumer connection points; and back-end platforms that manage channel transactions, operations, and integration. Its products include Vynamic Engage, a cloud-based software-as-a-service solution that enables a 360-degree view of customer behavior at various touchpoints; Vynamic Mobile Shopper, which offers mobile self-scanning capabilities through retail-hardened devices and consumer smartphones; and Vynamic Mobile Retail, a mobile scan and go application that includes personalization features of Vynamic Engage. The Systems segment offers cash recyclers and dispensers, intelligent deposit terminals, teller automation and kiosk technologies, and physical security solutions for banking customers; and modular, integrated, and mobile POS systems, as well as printers, scales, mobile scanners, banknote and coin processing systems, and self-checkout terminals and ordering kiosks for retail customers. The company was formerly known as Diebold, Incorporated and changed its name to Diebold Nixdorf, Incorporated in December 2016. Diebold Nixdorf, Incorporated was founded in 1859 and is based in North Canton, Ohio.

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