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NICE Systems (NICE) versus Fitbit (FIT) HeadHead Comparison

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

Institutional and Insider Ownership

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44.5% of NICE Systems shares are owned by institutional investors. Comparatively, 59.5% of Fitbit shares are owned by institutional investors. 0.0% of NICE Systems shares are owned by company insiders. Comparatively, 19.8% of Fitbit shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
NICE Systems 10.98% 8.71% 5.27%
Fitbit -19.05% -19.17% -10.92%

Analyst Ratings

This is a summary of recent ratings and price targets for NICE Systems and Fitbit, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NICE Systems 0 5 3 0 2.38
Fitbit 3 9 4 0 2.06

NICE Systems presently has a consensus target price of $95.29, suggesting a potential downside of 6.83%. Fitbit has a consensus target price of $5.80, suggesting a potential upside of 10.27%. Given Fitbit’s higher possible upside, analysts clearly believe Fitbit is more favorable than NICE Systems.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NICE Systems $1.33 billion 4.61 $143.29 million $2.31 44.27
Fitbit $1.62 billion 0.68 -$277.19 million ($0.65) -8.09

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

Risk and Volatility

NICE Systems has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, Fitbit has a beta of 1.89, meaning that its stock price is 89% more volatile than the S&P 500.

Summary

NICE Systems beats Fitbit on 8 of the 14 factors compared between the two stocks.

NICE Systems Company Profile

NICE Ltd. provides enterprise software solutions worldwide. It operates in two segments, Customer Engagement and Financial Crime and Compliance. The Customer Engagement segment offers platform and solutions that empower businesses to deliver consistent and personalized experience across the customer journey, and delivered in the cloud, as well as on premise. Its solutions also optimize business performance and ensure compliance. This segment serves contact centers, back office operations, and retail branches in various industries, including banking, telecommunications, insurance, healthcare, business process outsourcing, government, utilities, travel, entertainment, and e-commerce. The Financial Crime and 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, Bain, Boston Consulting Group, Cisco, Cognizant, ConvergeOne, Deloitte, Fuze, IBM, Infosys, IPC, Motorola, PWC, RingCentral, Salesforce.com, Servion, Tata Consulting Services, and Verizon. 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.

Fitbit Company Profile

Fitbit, Inc., a technology company, provides health solutions in the United States and internationally. The company offers a line of devices, including Fitbit Surge, Fitbit Blaze, Fitbit Charge 2, Alta HR, Alta, Fitbit Flex 2, Fitbit One, and Fitbit Zip activity trackers; Fitbit Ionic smartwatches; Fitbit Aria 2 Wi-Fi smart scales; and a range of accessories, such as bands and frames for its devices, as well as Fitbit Flyer, a wireless headphone designed for fitness. It also offers Fitbit online dashboard and mobile apps that sync automatically with and display real-time data from its wearable devices; and Fitbit Coach that offers exercise programs through personal trainer and yoga apps. The company sells its products through consumer electronics and specialty, e-commerce, mass merchant, department store, club, and sporting goods and outdoors retailers; wireless carriers; distributors; and Fitbit.com, an online store, as well as directly to consumers. The company was formerly known as Healthy Metrics Research, Inc. and changed its name to Fitbit, Inc. in October 2007. Fitbit, Inc. was founded in 2007 and is headquartered in San Francisco, California.