Critical Analysis: Nuance Communications (NASDAQ:NUAN) vs. Konami (NASDAQ:KNMCY)
Konami (OTCMKTS:KNMCY) and Nuance Communications (NASDAQ:NUAN) are both mid-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.
Risk & Volatility
Konami has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500. Comparatively, Nuance Communications has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.
0.0% of Konami shares are owned by institutional investors. Comparatively, 87.8% of Nuance Communications shares are owned by institutional investors. 0.7% of Nuance Communications shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Konami pays an annual dividend of $0.97 per share and has a dividend yield of 2.0%. Nuance Communications does not pay a dividend. Konami pays out 48.3% of its earnings in the form of a dividend.
This is a breakdown of current ratings and target prices for Konami and Nuance Communications, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Nuance Communications has a consensus target price of $19.00, indicating a potential upside of 10.92%. Given Nuance Communications’ higher possible upside, analysts plainly believe Nuance Communications is more favorable than Konami.
This table compares Konami and Nuance Communications’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Konami and Nuance Communications’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Konami||$2.16 billion||2.98||$274.56 million||$2.01||23.70|
|Nuance Communications||$2.05 billion||2.43||-$159.92 million||$0.81||21.19|
Konami has higher revenue and earnings than Nuance Communications. Nuance Communications is trading at a lower price-to-earnings ratio than Konami, indicating that it is currently the more affordable of the two stocks.
Konami beats Nuance Communications on 8 of the 15 factors compared between the two stocks.
Konami Company Profile
Konami Holdings Corporation, together with its subsidiaries, primarily engages in the digital entertainment business. It operates through four segments: Digital Entertainment, Health & Fitness, Gaming & Systems, and Pachislot & Pachinko Machines. The Digital Entertainment segment manufactures and sells digital content and related products, including mobile games, arcade games, card games, and computer and video games. The Health & Fitness segment operates health and fitness clubs, as well as designs, manufactures, and sells fitness machines and health products. The Gaming & Systems segment designs, manufactures, sells, and services gaming machines and casino management systems. The Pachislot & Pachinko Machines segment researches, designs, produces, and sells pachinko slot and pachinko machines. It operates in Japan and other Asia/Oceania countries, the United States, and Europe. The company was formerly known as Konami Corporation and changed its name to Konami Holdings Corporation in October 2015. Konami Holdings Corporation was founded in 1969 and is headquartered in Tokyo, Japan.
Nuance Communications Company Profile
Nuance Communications, Inc. provides voice recognition and natural language understanding solutions worldwide. It operates through five segments: Healthcare, Automotive, Enterprise, Imaging, and Other. The Healthcare segment offers clinical speech and clinical language understanding solutions, such as Dragon Medical, a dictation software that allow physicians to capture and document patient care in real-time; transcription solutions, which enable physicians to streamline clinical documentation with a transcription platforms; clinical document improvement and coding solutions; diagnostic solutions that allow radiologists to document, collaborate, and share medical images and reports; and professional and personal productivity solutions to business users and consumers. The Automotive segment provides branded and personalized virtual assistants and connected car services for automotive manufacturers and their suppliers. The Enterprise segment offers On-Premise solutions and services, an automated customer service solution that comprise automated speech recognition, voice biometrics, transcription, text-to-speech, and dialog and analytics products; and On-Demand multichannel cloud, a platform, which offers enterprises the ability to implement automatic customer service. The Imaging segment provides multi-function printer (MFP) scanning and document management solutions; MFP printing and document management solutions to capture and automate paper to digital work flows; and PDF and OCR software for capturing, creation, and management of document work flows. The Other segment offers voicemail transcription and other value-added services to mobile operators; and speech recognition solutions and predictive text technologies for handset devices. The company was formerly known as ScanSoft, Inc. and changed its name to Nuance Communications, Inc. in October 2005. Nuance Communications, Inc. was founded in 1992 and is headquartered in Burlington, Massachusetts.
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