Head-To-Head Contrast: Cornerstone OnDemand (CSOD) vs. Ellie Mae (ELLI)

Cornerstone OnDemand (NASDAQ:CSOD) and Ellie Mae (NYSE:ELLI) are both mid-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.

Earnings and Valuation

This table compares Cornerstone OnDemand and Ellie Mae’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cornerstone OnDemand $481.98 million 6.12 -$61.33 million ($0.70) -71.67
Ellie Mae $417.04 million 7.12 $52.85 million $1.03 83.24

Ellie Mae has lower revenue, but higher earnings than Cornerstone OnDemand. Cornerstone OnDemand is trading at a lower price-to-earnings ratio than Ellie Mae, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cornerstone OnDemand and Ellie Mae’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cornerstone OnDemand -10.03% -79.03% -3.02%
Ellie Mae 7.81% 4.50% 4.05%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Cornerstone OnDemand and Ellie Mae, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cornerstone OnDemand 1 4 6 1 2.58
Ellie Mae 2 5 7 0 2.36

Cornerstone OnDemand currently has a consensus price target of $56.10, suggesting a potential upside of 11.82%. Ellie Mae has a consensus price target of $107.31, suggesting a potential upside of 25.15%. Given Ellie Mae’s higher probable upside, analysts clearly believe Ellie Mae is more favorable than Cornerstone OnDemand.

Risk and Volatility

Cornerstone OnDemand has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, Ellie Mae has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.

Insider & Institutional Ownership

91.7% of Cornerstone OnDemand shares are owned by institutional investors. 11.7% of Cornerstone OnDemand shares are owned by company insiders. Comparatively, 3.1% of Ellie Mae shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Ellie Mae beats Cornerstone OnDemand on 9 of the 15 factors compared between the two stocks.

About Cornerstone OnDemand

Cornerstone OnDemand, Inc., together with its subsidiaries, provides learning and human capital management software through software-as-a-service model worldwide. Its enterprise human capital management platform comprises four product suites, such as Recruiting Suite that helps organizations to source and attract candidates, assess and select applicants, onboard new hires, and manage the entire recruiting process; Learning Suite, which enables clients to manage training and development programs, knowledge sharing and collaboration among employees, track compliance requirements, and support career development for employees; Performance Suite that provides tools to manage goal setting, performance reviews, competency assessments, development plans, continuous feedback, compensation management, and succession planning; and HR Administration Suite, which supports employee records administration, organizational management, employee and manager self-service, workforce planning, and compliance reporting. The company also offers PiiQ, a cloud-based talent management solution for organizations with 500 or fewer employees; and Cornerstone Edge solutions that allow clients and partners to integrate with marketplace of service providers. In addition, it provides professional services, including application configuration, system integration, business process re-engineering, change management, and training. The company serves automotive, business services, education and publishing, financial services, food and restaurants, healthcare, insurance, media and communications, non-profits, pharmaceuticals, public sector, retail, technology, and travel industries. Cornerstone OnDemand, Inc. was founded in 1999 and is headquartered in Santa Monica, California.

About Ellie Mae

Ellie Mae, Inc. provides cloud-based platform for the mortgage finance industry in the United States. The company provides Encompass, a proprietary software solution that combines lead management; loan origination and processing; underwriting; preparation of mortgage applications, disclosure agreements, and closing documents; loan funding and closing; compliance with regulatory and investor requirements; and enterprise management. Its platform also offers Encompass Lending Platform and Encompass Developer Connect Solution, and Encompass Data Connect; and sales and marketing solutions, such as Encompass CRM, Velocify, Encompass WebCenter, Encompass Consumer Connect, Encompass TPO WebCenter, Encompass TPO Connect, and Encompass Loan Officer Connect. In addition, the company provides loan quality and compliance solutions, including Ellie Mae Total Quality Loan Program, Encompass Compliance Service, Encompass 4506-T Service, Encompass Flood Service, and Encompass Fraud Service. Further, it offers efficient processing and closing solutions, such as Encompass Electronic Document Management, Encompass Docs, Encompass Appraisal Center, and Encompass Title & Closing Center; and integrated pricing and secondary marketing solutions, including Encompass Product and Pricing Service, Encompass Secondary Marketing, and Encompass Data and Docs Delivery. Additionally, the company provides education and training; and loan product, policy, and guideline data and analytics services under the AllRegs brand. Ellie Mae, Inc. was founded in 1997 and is headquartered in Pleasanton, California.

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