Critical Contrast: Ellie Mae (ELLI) vs. The Competition

Ellie Mae (NYSE: ELLI) is one of 103 publicly-traded companies in the “Enterprise Software” industry, but how does it weigh in compared to its rivals? We will compare Ellie Mae to similar companies based on the strength of its profitability, earnings, valuation, dividends, institutional ownership, risk and analyst recommendations.

Earnings & Valuation

This table compares Ellie Mae and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Ellie Mae $360.29 million $37.77 million 61.47
Ellie Mae Competitors $1.76 billion $288.64 million 64.59

Ellie Mae’s rivals have higher revenue and earnings than Ellie Mae. Ellie Mae is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Ellie Mae and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ellie Mae 13.45% 6.39% 5.75%
Ellie Mae Competitors -22.16% -212.18% -6.92%

Volatility and Risk

Ellie Mae has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500. Comparatively, Ellie Mae’s rivals have a beta of 1.04, meaning that their average share price is 4% more volatile than the S&P 500.

Insider & Institutional Ownership

59.8% of shares of all “Enterprise Software” companies are owned by institutional investors. 3.4% of Ellie Mae shares are owned by insiders. Comparatively, 23.2% of shares of all “Enterprise Software” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Ellie Mae and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ellie Mae 0 4 9 0 2.69
Ellie Mae Competitors 379 2229 4176 121 2.58

Ellie Mae currently has a consensus target price of $113.10, indicating a potential upside of 21.85%. As a group, “Enterprise Software” companies have a potential upside of 7.59%. Given Ellie Mae’s stronger consensus rating and higher possible upside, equities analysts plainly believe Ellie Mae is more favorable than its rivals.

Summary

Ellie Mae beats its rivals on 7 of the 13 factors compared.

About Ellie Mae

Ellie Mae, Inc. is a provider of on-demand software solutions and services for the residential mortgage industry in the United States. Banks, credit unions, mortgage lenders and mortgage brokers use the Company’s Encompass mortgage management solution to originate and fund mortgages. The Company’s Encompass software is an enterprise solution that handles functions involved in running the business of originating mortgages, including customer relationship management; loan processing; underwriting; preparation of application, disclosure and closing documents; funding and closing the loan for the borrower; compliance with regulatory and investor requirements, and overall enterprise management. It delivers Encompass software in an on-demand Software-as-a-Service (SaaS). It also hosts the Ellie Mae Network, an electronic platform that allows Encompass users to conduct electronic business transactions with investors and service providers they work with in order to process and fund loans.

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