Comparing NiCE (NASDAQ:NICE) and VTEX (NYSE:VTEX)

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

Profitability

This table compares VTEX and NiCE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VTEX	11.98%	12.98%	8.76%
NiCE	13.86%	15.46%	11.53%

Risk and Volatility

VTEX has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, NiCE has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.

Institutional and Insider Ownership

63.7% of VTEX shares are owned by institutional investors. Comparatively, 63.3% of NiCE shares are owned by institutional investors. 40.9% of VTEX shares are owned by insiders. Comparatively, 0.0% of NiCE shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for VTEX and NiCE, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VTEX	0	6	2	0	2.25
NiCE	0	8	8	0	2.50

VTEX currently has a consensus price target of $4.60, suggesting a potential upside of 15.58%. NiCE has a consensus price target of $131.71, suggesting a potential upside of 15.78%. Given NiCE’s stronger consensus rating and higher probable upside, analysts plainly believe NiCE is more favorable than VTEX.

Earnings & Valuation

This table compares VTEX and NiCE”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VTEX	$252.65 million	2.69	$20.01 million	$0.16	24.88
NiCE	$3.07 billion	2.17	$612.10 million	$6.87	16.56

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

Summary

NiCE beats VTEX on 9 of the 14 factors compared between the two stocks.

About VTEX

VTEX provides software-as-a-service digital commerce platform for enterprise brands and retailers. Its platform enables customers to execute their commerce strategy, including building online stores, integrating, and managing orders across channels, and creating marketplaces to sell products from third-party vendors. It has operations in Brazil, Argentina, Chile, Colombia, France, Italy, Mexico, Peru, Portugal, Romania, Singapore, Spain, the United Kingdom, and the United States. VTEX was founded in 2000 and is headquartered in London, the United Kingdom.

About NiCE

NiCE Ltd., together with its subsidiaries, provides cloud platforms for AI-driven digital business solutions worldwide. It offers CXone, a cloud native open platform; Enlighten, an AI engine for the customer engagement market; and smart self-service enables organizations to address consumers’ needs; and journey orchestration solutions that empower organizations to connect and route customers to deal with the customer’s request, and connects them using real-time AI-based routing. The company provides smart self service solutions that empower organizations to build intelligent automated conversations based on data; and prepared agent solutions and tools enable contact center agents to guide and alert them in real time; provides solutions that help organizations to record structured and unstructured customer interaction and transaction data; and NiCE Evidencentral, an digital evidence management platform for public safety emergency communications, law enforcement, and criminal justice helps agencies. In addition, it offers X-Sight, is an open and flexible AI-cloud platform for financial crime and compliance; Xceed, a cloud platform for comprehensive AML and fraud prevention for small and mid-sized organizations; data intelligence solutions that enable organizations to turn raw data into comprehensive actionable intelligence to prevent and detect financial crimes; AI and analytics technologies to detect and prevent financial crimes in real-time; money laundering and fraud prevention solutions that help organizations adhere to capital markets compliance and anti-money laundering compliance regulations; intelligent investigations solutions; and self-service solutions that provide organizations with customization and self-development capabilities. 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.