Reviewing NIC (EGOV) and China Xingbang Industry Group (CXGP)

NIC (NASDAQ:EGOV) and China Xingbang Industry Group (OTCMKTS:CXGP) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares NIC and China Xingbang Industry Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NIC 16.94% 32.21% 20.19%
China Xingbang Industry Group N/A N/A N/A

Institutional and Insider Ownership

89.4% of NIC shares are owned by institutional investors. 4.1% of NIC shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares NIC and China Xingbang Industry Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NIC $336.51 million 2.50 $51.61 million $0.77 16.44
China Xingbang Industry Group $530,000.00 N/A -$8.36 million N/A N/A

NIC has higher revenue and earnings than China Xingbang Industry Group.

Analyst Recommendations

This is a summary of current ratings and target prices for NIC and China Xingbang Industry Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NIC 0 3 0 0 2.00
China Xingbang Industry Group 0 0 0 0 N/A

NIC presently has a consensus target price of $16.50, suggesting a potential upside of 30.33%.

Dividends

NIC pays an annual dividend of $0.32 per share and has a dividend yield of 2.5%. China Xingbang Industry Group does not pay a dividend. NIC pays out 41.6% of its earnings in the form of a dividend.

Summary

NIC beats China Xingbang Industry Group on 8 of the 9 factors compared between the two stocks.

NIC Company Profile

NIC Inc., together with its subsidiaries, provides digital government services that enable governments to use technology to provide various services to businesses and citizens in the United States. The company's outsourced portal business enters into long-term contracts with state and local governments to design, build, and operate Internet-based and enterprise-wide portals on their behalf. Its portals consist of Websites and applications that enable businesses and citizens to access government information online and secure transactions, such as applying for a permit, retrieving government records, or filing a government-mandated form or report. The company's portal service offerings include motor vehicle driver history record retrieval; vehicle title, lien, and registration; motor vehicle inspections; temporary vehicle tags; driver's license renewal; hunting and fishing licenses; health professional license services; professional license renewal; business registrations and renewals; secretary of state business searches; Uniform Commercial Code (UCC) searches and filings; limited criminal history searches; court services; vital records; income and property tax payments; and payment processing products and services. Its software & services business provides software development and payment processing services to state and local governments, as well as federal agencies. In addition, the company develops and manages the pre-employment screening program for motor carriers using transaction-based business model. Further, it offers consulting, application development, and portal management services to governments. NIC Inc. was founded in 1991 and is based in Olathe, Kansas.

China Xingbang Industry Group Company Profile

China Xingbang Industry Group Inc. is an operator of a business to business to customer (B2B2C) e-commerce platform in the home furnishing industry. The Company, through its subsidiaries Xingbang BVI and Xingbang HK, owns the wholly foreign-owned enterprise (WFOE), which controls Guangdong Xingbang, a variable interest entity (VIE). Its operating entity, Xinyu Xingbang, is a company principally engaged in the operation of a B2B2C e-commerce platform in the PRC for manufacturers, distributors and other businesses in the lighting, ceramics and other home furnishing industry in the People’s Republic of China (PRC). It is engaged in operating and developing the Ju51 Mall. The Company is engaged in operating an e-commerce platform to provide value added services to manufacturers, distributors, retailers, decoration companies and decoration technicians in the home furnishing industry while serving consumers through the Ju51 Mall. It has approximately 240 technical service stations.

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