Nuance Communications (NASDAQ:NUAN) & Qualys (NASDAQ:QLYS) Financial Contrast

Nuance Communications (NASDAQ:NUAN) and Qualys (NASDAQ:QLYS) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.

Risk & Volatility

Nuance Communications has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, Qualys has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Earnings & Valuation

This table compares Nuance Communications and Qualys’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nuance Communications $1.82 billion 3.86 $213.81 million $0.76 32.89
Qualys $321.61 million 12.95 $69.34 million $1.67 64.03

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

Analyst Ratings

This is a breakdown of recent recommendations for Nuance Communications and Qualys, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nuance Communications 0 1 5 0 2.83
Qualys 1 8 6 0 2.33

Nuance Communications currently has a consensus target price of $24.80, indicating a potential downside of 0.80%. Qualys has a consensus target price of $104.29, indicating a potential downside of 2.47%. Given Nuance Communications’ stronger consensus rating and higher probable upside, equities analysts clearly believe Nuance Communications is more favorable than Qualys.

Profitability

This table compares Nuance Communications and Qualys’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nuance Communications 9.06% 12.80% 4.65%
Qualys 22.48% 19.56% 11.28%

Insider and Institutional Ownership

91.8% of Nuance Communications shares are owned by institutional investors. Comparatively, 90.5% of Qualys shares are owned by institutional investors. 0.5% of Nuance Communications shares are owned by company insiders. Comparatively, 16.2% of Qualys shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Qualys beats Nuance Communications on 8 of the 14 factors compared between the two stocks.

About Nuance Communications

Nuance Communications (NASDAQ: NUAN) is the pioneer and leader in conversational AI innovations that bring intelligence to everyday work and life. The company delivers solutions that understand, analyze, and respond to people – amplifying human intelligence to increase productivity and security. With decades of domain and AI expertise, Nuance works with thousands of organizations globally across healthcare, financial services, telecommunications, government, and retail – to create stronger relationships and better experiences for their customers and workforce. For more information, please visit www.nuance.com.

About Qualys

Qualys, Inc. provides cloud-based security and compliance solutions in the United States and internationally. The company offers Qualys Cloud Apps, which includes Asset Inventory, CMDB Sync, Vulnerability Management, Continuous Monitoring, Cloud Agent, Threat Protection, Security Configuration Assessment, Indication of Compromise, Policy Compliance, PCI Compliance, Security Assessment Questionnaire, File Integrity Monitoring, Web Application Scanning, and Web Application Firewall. Its integrated suite of security and compliance solutions delivered on its Qualys Cloud Platform enables customers to identify IT assets, collect and analyze IT security data, discover and prioritize vulnerabilities, recommend remediation actions, and verify the implementation of such actions. The company also provides core services, including asset tagging and management, reporting and dashboards, questionnaires and collaboration, remediation and workflow, big data correlation and analytics engine, and alerts and notifications, which enable integrated workflows, management and real-time analysis, and reporting across IT security and compliance solutions. The company markets and sells its IT security and compliance solutions to customers directly through its sales teams, as well as indirectly through its network of channel partners, such as security consulting organizations, managed service providers and resellers, and consulting firms. It serves enterprises, government entities, and small and medium-sized businesses in various industries, including education, financial services, government, healthcare, insurance, manufacturing, media, retail, technology, and utilities. The company was founded in 1999 and is headquartered in Foster City, California.

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