NiCE (NASDAQ:NICE – Get Free Report) and Arista Networks (NYSE:ANET – Get Free Report) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.
Profitability
This table compares NiCE and Arista Networks’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NiCE | 17.57% | 17.42% | 12.83% |
| Arista Networks | 38.32% | 30.10% | 19.35% |
Volatility and Risk
NiCE has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Arista Networks has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NiCE | $2.95 billion | 2.01 | $612.10 million | $8.43 | 12.03 |
| Arista Networks | $9.01 billion | 23.70 | $3.51 billion | $2.92 | 58.04 |
Arista Networks has higher revenue and earnings than NiCE. NiCE is trading at a lower price-to-earnings ratio than Arista Networks, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings for NiCE and Arista Networks, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NiCE | 1 | 5 | 8 | 0 | 2.50 |
| Arista Networks | 0 | 1 | 22 | 2 | 3.04 |
NiCE currently has a consensus price target of $131.17, suggesting a potential upside of 29.34%. Arista Networks has a consensus price target of $189.74, suggesting a potential upside of 11.96%. Given NiCE’s higher possible upside, equities research analysts plainly believe NiCE is more favorable than Arista Networks.
Insider & Institutional Ownership
63.3% of NiCE shares are owned by institutional investors. Comparatively, 82.5% of Arista Networks shares are owned by institutional investors. 0.0% of NiCE shares are owned by insiders. Comparatively, 2.7% of Arista Networks shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Arista Networks beats NiCE on 13 of the 15 factors compared between the two stocks.
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.
About Arista Networks
Arista Networks, Inc. engages in the development, marketing, and sale of data-driven, client to cloud networking solutions for data center, campus, and routing environments in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. Its cloud networking solutions consist of Extensible Operating System (EOS), a publish-subscribe state-sharing networking operating system offered in combination with a set of network applications. The company offers data center and cloud networking systems, including newer artificial intelligence (AI) ethernet switching platforms; campus wired and wireless products, and routing systems addressing Core Routing, Edge Routing, Data Center Interconnect (DCI), Multi-cloud and Wide Area Networking (WAN) use cases; and a suite of value-add software solutions that leverage EOS to provide end-to-end orchestration, automation, analytics, network monitoring, and security. It also provides post contract customer support services, such as technical support, hardware repair and replacement parts beyond standard warranty, bug fixes, patches, and upgrade services. The company serves a range of industries comprising internet companies, service providers, financial services organizations, government agencies, media and entertainment companies, telecommunication service providers, and others. It markets and sells its products through distributors, system integrators, value-added resellers, and original equipment manufacturer partners, as well as through its direct sales force. The company was formerly known as Arastra, Inc. and changed its name to Arista Networks, Inc. in October 2008. Arista Networks, Inc. was incorporated in 2004 and is headquartered in Santa Clara, California.
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