Critical Analysis: PAR Technology (PAR) and NCR (NCR)

PAR Technology (NYSE:PAR) and NCR (NYSE:NCR) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for PAR Technology and NCR, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PAR Technology 0 0 0 0 N/A
NCR 0 4 2 0 2.33

NCR has a consensus price target of $35.80, suggesting a potential upside of 32.89%. Given NCR’s higher probable upside, analysts clearly believe NCR is more favorable than PAR Technology.

Profitability

This table compares PAR Technology and NCR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PAR Technology -3.79% -1.39% -0.82%
NCR -1.33% 75.44% 5.37%

Insider & Institutional Ownership

37.7% of PAR Technology shares are owned by institutional investors. Comparatively, 91.3% of NCR shares are owned by institutional investors. 30.0% of PAR Technology shares are owned by insiders. Comparatively, 1.0% of NCR shares are owned by 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.

Earnings & Valuation

This table compares PAR Technology and NCR’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PAR Technology $232.60 million 1.26 -$3.38 million N/A N/A
NCR $6.52 billion 0.49 $232.00 million $3.20 8.42

NCR has higher revenue and earnings than PAR Technology.

Risk & Volatility

PAR Technology has a beta of -0.15, indicating that its stock price is 115% less volatile than the S&P 500. Comparatively, NCR has a beta of 1.73, indicating that its stock price is 73% more volatile than the S&P 500.

Summary

NCR beats PAR Technology on 9 of the 11 factors compared between the two stocks.

About PAR Technology

PAR Technology Corporation, together with its subsidiaries, provides management technology solutions worldwide. The company operates through two segments, Restaurant/Retail and Government. The Restaurant/Retail segment offers cloud and on-premise software applications and hardware platforms, as well as related installation, technical, and maintenance support services. This segment's hardware offerings include POS terminals, tablets, kitchen systems utilizing printers and/or video monitors, and food safety monitoring and task management hardware products; and software offerings comprise front-of-store POS software applications, operations management software applications, and enterprise software applications for content management and business intelligence. This segment serves restaurants, grocery stores, and specialty retail outlets. The Government segment offers intelligence, surveillance, and reconnaissance; systems engineering and evaluation; satellite and telecommunications; satellite operation, management, and maintenance; and management technology/systems services to the U.S. Department of Defense and federal agencies. The company was founded in 1968 and is headquartered in New Hartford, New York.

About NCR

NCR Corporation provides omni-channel technology solutions for businesses to 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, 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 and thin-client ATMs, interactive teller machines, 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. It has a strategic alliance with Tata Consultancy Services. NCR Corporation was founded in 1884 and is headquartered in Atlanta, Georgia.

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