Financial Survey: Envestnet (NYSE:ENV) & The Competition

Envestnet (NYSE: ENV) is one of 97 public companies in the “Enterprise Software” industry, but how does it weigh in compared to its competitors? We will compare Envestnet to related companies based on the strength of its analyst recommendations, valuation, earnings, profitability, institutional ownership, dividends and risk.

Profitability

This table compares Envestnet and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Envestnet -8.93% 7.78% 3.75%
Envestnet Competitors -24.94% -210.61% -7.80%

Institutional & Insider Ownership

95.3% of Envestnet shares are held by institutional investors. Comparatively, 59.1% of shares of all “Enterprise Software” companies are held by institutional investors. 7.8% of Envestnet shares are held by company insiders. Comparatively, 23.5% of shares of all “Enterprise Software” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Envestnet and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Envestnet $629.84 million $56.65 million -41.40
Envestnet Competitors $1.27 billion $348.13 million 35.06

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

Analyst Recommendations

This is a summary of current ratings and price targets for Envestnet and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Envestnet 0 2 4 0 2.67
Envestnet Competitors 352 2074 3939 108 2.59

Envestnet currently has a consensus price target of $51.83, indicating a potential downside of 2.93%. As a group, “Enterprise Software” companies have a potential upside of 0.44%. Given Envestnet’s competitors higher probable upside, analysts plainly believe Envestnet has less favorable growth aspects than its competitors.

Volatility & Risk

Envestnet has a beta of 1.82, indicating that its stock price is 82% more volatile than the S&P 500. Comparatively, Envestnet’s competitors have a beta of 1.13, indicating that their average stock price is 13% more volatile than the S&P 500.

Summary

Envestnet beats its competitors on 8 of the 13 factors compared.

About Envestnet

Envestnet, Inc. is a provider of financial and wealth management technology and services to financial advisors, investors and financial service providers. The Company’s segments are Envestnet and Envestnet Yodlee. Its Envestnet segment provides unified wealth management software and services empowering financial advisors and institutions. Its Envestnet Yodlee segment is a data aggregation and data analytics platform. Its services and related technology are provided through Envestnet’s wealth management software, Envestnet PMC, Envestnet Tamarac, Vantage Reporting Solution, Envestnet WMS, Envestnet Placemark, Envestnet Retirement Solutions, Envestnet Yodlee and Envestnet Finance Logix. It operates Registered Investment Advisors (RIAs) and a registered broker-dealer. Its centrally-hosted technology platform services include risk assessment and selection of investment strategies and solutions, asset allocation models, and research and due diligence.

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