C3.ai (NYSE:AI – Get Free Report) and NiCE (NASDAQ:NICE – Get Free Report) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.
Profitability
This table compares C3.ai and NiCE’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| C3.ai | -192.10% | -61.25% | -49.03% |
| NiCE | 13.86% | 15.46% | 11.53% |
Volatility & Risk
C3.ai has a beta of 2.17, meaning that its share price is 117% more volatile than the S&P 500. Comparatively, NiCE has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.
Valuation and Earnings
This table compares C3.ai and NiCE”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| C3.ai | $250.27 million | 7.68 | -$470.37 million | ($3.08) | -3.88 |
| NiCE | $2.95 billion | 1.98 | $612.10 million | $6.87 | 14.50 |
NiCE has higher revenue and earnings than C3.ai. C3.ai is trading at a lower price-to-earnings ratio than NiCE, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
39.0% of C3.ai shares are owned by institutional investors. Comparatively, 63.3% of NiCE shares are owned by institutional investors. 19.8% of C3.ai shares are owned by company insiders. Comparatively, 0.0% of NiCE shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and recommmendations for C3.ai and NiCE, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| C3.ai | 7 | 5 | 2 | 0 | 1.64 |
| NiCE | 0 | 8 | 8 | 0 | 2.50 |
C3.ai presently has a consensus price target of $9.62, indicating a potential downside of 19.48%. NiCE has a consensus price target of $131.71, indicating a potential upside of 32.26%. Given NiCE’s stronger consensus rating and higher probable upside, analysts clearly believe NiCE is more favorable than C3.ai.
Summary
NiCE beats C3.ai on 10 of the 13 factors compared between the two stocks.
About C3.ai
C3.ai, Inc. operates as an enterprise artificial intelligence (AI) software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company provides C3 AI platform, an application development and runtime environment that enables customers to design, develop, and deploy enterprise AI applications; C3 AI Ex Machina for analysis-ready data; C3 AI CRM, an industry specific customer relationship management solution; and C3 Generative AI Product Suite that enables to locate, retrieve, and present information. It also offers C3 AI applications, including C3 AI Inventory Optimization, a solution to optimize raw material, in-process, and finished goods inventory levels; C3 AI Supply Network Risk, which identifies emerging inbound and outbound risks across the network; C3 AI Sustainability Suite, which helps to decrease greenhouse gas emission; C3 AI Production Schedule Optimization, a solution for scheduling production; C3 AI Financial Services Suite, which helps to minimize compliance risks; and C3 AI Energy Management solution. In addition, it offers integrated turnkey enterprise AI applications for oil and gas, chemicals, utilities, manufacturing, financial services, defense, intelligence, aerospace, healthcare, and telecommunications market. It has strategic partnerships with Baker Hughes in the areas of oil and gas market; Booz Allen to provide solutions to government, defense, and intelligence sectors; Raytheon; and AWS, Google, and Microsoft. The company was formerly known as C3 IoT, Inc. and changed its name to C3.ai, Inc. in June 2019. C3.ai, Inc. was incorporated in 2009 and is headquartered in Redwood City, California.
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.
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