Ellie Mae (ELLI) & The Competition Head-To-Head Review

Ellie Mae (NASDAQ: ELLI) is one of 107 publicly-traded companies in the “Enterprise Software” industry, but how does it compare to its peers? We will compare Ellie Mae to similar businesses based on the strength of its earnings, risk, analyst recommendations, dividends, valuation, institutional ownership and profitability.

Risk and Volatility

Ellie Mae has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500. Comparatively, Ellie Mae’s peers have a beta of 1.12, meaning that their average share price is 12% 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 18.08% 10.74% 9.75%
Ellie Mae Competitors -25.32% -198.83% -7.60%

Insider and Institutional Ownership

59.2% of shares of all “Enterprise Software” companies are owned by institutional investors. 23.5% of shares of all “Enterprise Software” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

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

Gross Revenue NetIncome Price/Earnings Ratio
Ellie Mae N/A N/A 57.61
Ellie Mae Competitors $1.82 billion $300.08 million 233.96

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

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ellie Mae 0 4 9 0 2.69
Ellie Mae Competitors 361 2168 4084 116 2.59

Ellie Mae presently has a consensus target price of $113.10, indicating a potential upside of 30.01%. As a group, “Enterprise Software” companies have a potential downside of 0.53%. Given Ellie Mae’s stronger consensus rating and higher possible upside, analysts plainly believe Ellie Mae is more favorable than its peers.

Summary

Ellie Mae beats its peers on 6 of the 11 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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