Both HubSpot Inc. (NYSE:HUBS) and NIC Inc. (NASDAQ:EGOV) compete on a level playing field in the Application Software industry. We will evaluate their performance with regards to profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| HubSpot Inc. | 512.98M | 13.54 | 63.83M | -0.36 | 0.00 |
| NIC Inc. | 344.90M | 3.33 | 58.27M | 0.89 | 14.06 |
Table 1 highlights HubSpot Inc. and NIC Inc.’s top-line revenue, earnings per share and valuation.
Profitability
Table 2 provides the return on equity, return on assets and net margins of the two firms.
| Net Margins | Return on Equity | Return on Assets | |
| HubSpot Inc. | -12.44% | -28.8% | -8.5% |
| NIC Inc. | 16.89% | 31.4% | 19.7% |
Risk & Volatility
A beta of 1.91 shows that HubSpot Inc. is 91.00% more volatile than Standard and Poor’s 500. Competitively, NIC Inc. is 30.00% less volatile than Standard and Poor’s 500, because of the 0.7 beta.
Liquidity
The Current Ratio and Quick Ratio of HubSpot Inc. are 3.2 and 3.2 respectively. Its competitor NIC Inc.’s Current Ratio is 2.8 and its Quick Ratio is 2.8. HubSpot Inc. can pay off short and long-term obligations better than NIC Inc.
Dividends
Meanhile, NIC Inc.’s yearly dividend is $0.32 per share and 1.85% dividend yield. HubSpot Inc. does not offer a dividend.
Analyst Recommendations
In next table is shown HubSpot Inc. and NIC Inc.’s ratings and recommendations.
| Sell Ratings | Hold Ratings | Buy Ratings | Rating Score | |
| HubSpot Inc. | 0 | 4 | 5 | 2.56 |
| NIC Inc. | 0 | 0 | 0 | 0.00 |
HubSpot Inc. has a consensus target price of $168.75, and a -0.01% downside potential.
Insider & Institutional Ownership
HubSpot Inc. and NIC Inc. has shares owned by institutional investors as follows: 97.4% and 92.9%. 6.5% are HubSpot Inc.’s share owned by insiders. On the other hand, insiders owned about 0.2% of NIC Inc.’s shares.
Performance
In this table we provide the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.
| Performance (W) | Performance (M) | Performance (Q) | Performance (HY) | Performance (Y) | Performance (YTD) | |
| HubSpot Inc. | -5.25% | -8.6% | -14.71% | 1.6% | 59.29% | 49.02% |
| NIC Inc. | -3.62% | -10.11% | -23.36% | -20.44% | -23.36% | -24.52% |
For the past year HubSpot Inc. has 49.02% stronger performance while NIC Inc. has -24.52% weaker performance.
Summary
NIC Inc. beats on 8 of the 13 factors HubSpot Inc.
HubSpot, Inc. provides a cloud-based marketing and sales software platform for businesses in the Americas, Europe, and the Asia Pacific. Its software platform includes integrated applications, such as social media, search engine optimization, blogging, Website content management, marketing automation, email, CRM, analytics, and reporting that enables businesses to attract visitors to their Websites, convert visitors into leads, and close leads into customers and delight customers. The company also offers professional, and phone and email-based support services. HubSpot, Inc. was founded in 2005 and is headquartered in Cambridge, Massachusetts.
NIC Inc., together with its subsidiaries, provides digital government services that enable governments to use technology to provide various services to businesses and citizens in the United States. The companyÂ’s Outsourced Portals business enters into long-term contracts with state and local governments to design, build, and operate Internet-based, enterprise-wide portals on their behalf. These portals consist of Websites and applications that enable businesses and citizens to access government information online and complete transactions, such as applying for a permit, retrieving government records, or filing a government-mandated form or report. Its portal service offerings include motor vehicle driver history record retrieval; vehicle title, lien, and registration; motor vehicle inspections; temporary vehicle tags; driverÂ’s license renewal; hunting and fishing licenses; health professional license services; professional license renewal; business registrations and renewals; secretary of state business searches; Uniform Commercial Code (UCC) searches and filings; limited criminal history searches; court services; vital records; income and property tax payments; and payment processing products and services. The companyÂ’s software & services business provides software development and payment processing services to state and local governments, as well as federal agencies. In addition, it develops and manages the pre-employment screening program for motor carriers using transaction-based business model. Further, the company offers consulting, application development, and portal management services to governments. NIC Inc. was founded in 1991 and is based in Olathe, Kansas.