Reviewing Nuance Communications (NUAN) & Dassault Systemes (DASTY)

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

Earnings and Valuation

This table compares Nuance Communications and Dassault Systemes’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nuance Communications $1.98 billion 2.14 -$150.99 million $0.60 23.83
Dassault Systemes $3.65 billion 10.36 $587.08 million $2.72 53.29



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

Dividends

Dassault Systemes pays an annual dividend of $0.48 per share and has a dividend yield of 0.3%. Nuance Communications does not pay a dividend. Dassault Systemes pays out 17.6% of its earnings in the form of a dividend.

Insider & Institutional Ownership

85.6% of Nuance Communications shares are held by institutional investors. Comparatively, 0.2% of Dassault Systemes shares are held by institutional investors. 1.2% of Nuance Communications shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Nuance Communications has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Dassault Systemes has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Nuance Communications and Dassault Systemes, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nuance Communications 0 2 5 1 2.88
Dassault Systemes 0 2 2 0 2.50

Nuance Communications currently has a consensus price target of $20.25, indicating a potential upside of 41.61%. Given Nuance Communications’ stronger consensus rating and higher possible upside, research analysts clearly believe Nuance Communications is more favorable than Dassault Systemes.

Profitability

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

Net Margins Return on Equity Return on Assets
Nuance Communications -10.32% 9.42% 3.19%
Dassault Systemes 16.52% 16.25% 9.18%

Summary

Dassault Systemes beats Nuance Communications on 10 of the 17 factors compared between the two stocks.

About Nuance Communications

Nuance Communications, Inc. provides voice recognition and natural language understanding solutions worldwide. It operates through four segments: Healthcare, Mobile, Enterprise, and Imaging. The Healthcare segment offers transcription solutions, which enable physicians to streamline clinical documentation with medical transcription platform; Dragon Medical, a dictation software that empowers physicians to capture and document patient care on various devices; clinical document improvement and coding solutions that ensure patient health information; 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 Mobile segment provides virtual assistants and connected services built on voice recognition, text-to-speech, natural language understanding, dialog, and text input technologies to automotive manufacturers, consumer electronic companies, and mobile and cable operators. The Enterprise segment offers On-Premise solutions and services, an automated customer service solution comprising speech recognition, voice biometrics, transcription, text-to-speech, and dialog and analytics products; and On-Demand multichannel cloud, a platform that offers enterprises the ability to implement automatic customer service. The Imaging segment provides multi-function printer (MFP) Scan automation solutions to offer scanning and document management solutions; MFP Print automation solutions to deliver printing and document management solutions; and PDF and OCR software, a technology that enables the capture, creation, and management of document workflows. The company has a strategic agreement with Partners HealthCare and SDL plc. 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.

About Dassault Systemes

Dassault Systèmes SE provides software applications and services worldwide. The company offers SOLIDWORKS 3D design software for 3D and electrical design, simulation, product data management, and technical communication; CATIA, an engineering and design software for product 3D computer-aided design (CAD); GEOVIA, which models and simulates the earth; and BIOVIA that provides a scientific collaborative environment for biological formulated products and advanced materials. It also provides SIMULIA, a simulation software solution for product, nature, and life; DELMIA manufacturing operations management solutions that enable to improve visibility into, control over, and synchronization across manufacturing operations and supply chain processes; 3DVIA that provides 3D space planning solutions; and ENOVIA that offers collaborative enterprise business process applications. In addition, the company offers 3DEXCITE software, content, and sales and marketing solutions; EXALEAD that enables organizations to access, analyze, and reveal enterprise digital intellectual properties and external information; and NETVIBES dashboard, which enables enterprises to identify and manage everything on real-time personalized dashboards. Further, it provides consulting services in methodology for design, deployment, and support; and training and engineering services. The company primarily serves companies in the aerospace and defense, consumer goods and retail, consumer packaged goods and retail, financial and business services, high-tech, industrial equipment, life sciences, marine and offshore, natural resources, and transportation and mobility industries; architecture, engineering, and construction industries; and energy, process, and utility industries through direct sales force and value-added resellers. Dassault Systèmes SE was founded in 1981 and is headquartered in Vélizy-Villacoublay, France.

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