Contrasting Apple (AAPL) and NICE Systems (NICE)

Apple (NASDAQ: AAPL) and NICE Systems (NASDAQ:NICE) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Profitability

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This table compares Apple and NICE Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Apple 21.13% 37.37% 13.82%
NICE Systems 10.76% 10.45% 6.26%

Volatility and Risk

Apple has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, NICE Systems has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.

Valuation and Earnings

This table compares Apple and NICE Systems’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Apple $229.23 billion 3.94 $48.35 billion $9.21 19.35
NICE Systems $1.33 billion 4.32 $143.29 million $2.31 41.49

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Apple and NICE Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apple 1 15 30 1 2.66
NICE Systems 0 4 3 0 2.43

Apple currently has a consensus target price of $203.95, suggesting a potential upside of 14.45%. NICE Systems has a consensus target price of $93.17, suggesting a potential downside of 2.79%. Given Apple’s stronger consensus rating and higher possible upside, analysts clearly believe Apple is more favorable than NICE Systems.

Insider & Institutional Ownership

61.4% of Apple shares are owned by institutional investors. Comparatively, 45.9% of NICE Systems shares are owned by institutional investors. 0.1% of Apple shares are owned by company insiders. Comparatively, 0.0% of NICE Systems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Apple pays an annual dividend of $2.52 per share and has a dividend yield of 1.4%. NICE Systems does not pay a dividend. Apple pays out 27.4% of its earnings in the form of a dividend. Apple has increased its dividend for 5 consecutive years.

Summary

Apple beats NICE Systems on 15 of the 18 factors compared between the two stocks.

Apple Company Profile

Apple Inc. (Apple) designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, and a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Company’s products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud, and a variety of accessory, service and support offerings. The Company also delivers digital content and applications through the iTunes Store, App StoreSM, iBookstoreSM, and Mac App Store. The Company distributes its products worldwide through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. In February 2012, the Company acquired app-search engine Chomp.

NICE Systems Company Profile

NICE Ltd. provides enterprise software solutions worldwide. Its software solutions help organizations understand their customers and employees, and predict their intentions and needs to create customer experiences; understand their workforce to drive efficiency; and identify suspicious behavior to prevent financial crime, as well as non-compliant activities. It operates in two segments, Customer Engagement and Financial Crime & Compliance. The Customer Engagement segment offers a portfolio of solutions that provide an omnichannel customer engagement platform and data-driven insights that empower businesses to deliver consistent and personalized experience across the customer journey, and delivered on-premises and in the cloud. Its solutions also optimize business performance and ensure compliance. This segment serves contact centers, self-service channels, back office operations, and retail branches spanning various industries, including banking, telecommunications, insurance, healthcare, business process outsourcing, government, utilities, travel, entertainment, and e-commerce. The Financial Crime & Compliance segment provides real time and cross-channel fraud prevention, anti-money laundering, brokerage compliance, and enterprise-wide case management services for financial institutions and regulatory authorities. The company also offers professional and support services covering various stages of the technology lifecycle. It sells its solutions and products directly to customers, as well as indirectly through selected partners. NICE Ltd. has strategic alliances with Accenture, Boston Consulting Group, Cisco, Deloitte, Fuze, IBM, IPC, Motorola, PWC, Ring Central, Tata Consulting Services, Verizon, and Convexus SAC. The company was formerly known as NICE-Systems Ltd. and changed its name to NICE Ltd. in June 2016. NICE Ltd. was founded in 1986 and is headquartered in Ra'anana, Israel.

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