Nice (NICE) vs Ringcentral, Inc. (RNG)

Nice and Ringcentral, Inc. are both Software Application companies. Nice and Ringcentral, Inc. are of similar size ($6.7B and $6.6B). Nice trades at the lower P/E: 16.2× against 59.0×. Nice grew revenue faster over the last twelve months: 8.14% against 5.22%. Nice has the higher net margin (13.9% vs 4.27%) and the lower return on invested capital (10.4% vs 27.2%). Across the 21 metrics below, Nice leads on 13 and Ringcentral, Inc. on 8.

Valuation

Metric NICE RNG Software Application median
P/E 16.18 59.04 24.79
P/S 2.16 2.48 2.67
P/B 1.71 n/m 3.01
Price to free cash flow 11.79 11.15 16.59
EV/EBITDA 8.88 13.13 14.40
EV/Sales 2.34 2.87 2.62
Earnings yield 6.18% 1.69% 0.00%
Free cash flow yield 8.48% 8.97% 1.91%

Profitability

Metric NICE RNG Software Application median
Gross margin 65.12% 71.83% 67.03%
Operating margin 18.50% 6.72% 0.00%
Net margin 13.86% 4.27% 0.00%
Free cash flow margin 18.29% 22.31% 4.32%
Return on equity 0.00% (20.10%) 0.00%
Return on assets 8.16% 7.38% 0.00%
Return on invested capital 10.37% 27.20% 0.00%

Growth

Metric NICE RNG Software Application median
Revenue growth (TTM) 8.14% 5.22% 12.40%
EPS growth (last fiscal year) 43.05% 176.19% —
Revenue growth, 5-year CAGR 12.31% 16.27% 13.72%
Net income growth, 5-year CAGR 25.53% 0.00% 0.00%

Health

Metric NICE RNG Software Application median
Debt to equity 0.00 (1.84) 0.02
Current ratio 1.33 1.11 1.55
Net debt to EBITDA (0.49) 2.19 0.06

Dividend

Metric NICE RNG Software Application median
Dividend yield 0.01% — 1.25%
Payout ratio 0.00 0.00 0.00

Size

Metric NICE RNG Software Application median
Market cap 6.64b 6.67b 396.11m

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