Ellie Mae (ELLI) versus The Competition Critical Survey

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

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Ellie Mae $360.29 million $37.77 million 58.75
Ellie Mae Competitors $1.76 billion $288.64 million 51.21

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

Institutional and Insider Ownership

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Ellie Mae and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ellie Mae 0 4 9 0 2.69
Ellie Mae Competitors 377 2213 4152 120 2.59

Ellie Mae currently has a consensus price target of $113.10, indicating a potential upside of 27.49%. As a group, “Enterprise Software” companies have a potential upside of 5.78%. Given Ellie Mae’s stronger consensus rating and higher possible upside, equities analysts plainly believe Ellie Mae is more favorable than its peers.

Risk & Volatility

Ellie Mae has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500. Comparatively, Ellie Mae’s peers have a beta of 1.06, suggesting that their average stock price is 6% more volatile than the S&P 500.

Profitability

This table compares Ellie Mae and its peers’ 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 -22.14% -213.44% -7.30%

Summary

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

Ellie Mae Company Profile

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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