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

Insider & Institutional Ownership

95.5% of Envestnet shares are held by institutional investors. Comparatively, 59.2% of shares of all “Enterprise Software” companies are held by institutional investors. 7.8% of Envestnet shares are held by insiders. Comparatively, 23.4% of shares of all “Enterprise Software” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Envestnet and its peers’ 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 -25.29% -211.37% -8.18%

Analyst Recommendations

This is a breakdown of current ratings for Envestnet and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Envestnet 0 2 4 0 2.67
Envestnet Competitors 343 2040 3878 107 2.59

Envestnet currently has a consensus price target of $49.00, indicating a potential downside of 9.68%. As a group, “Enterprise Software” companies have a potential upside of 4.42%. Given Envestnet’s peers higher possible upside, analysts plainly believe Envestnet has less favorable growth aspects than its peers.

Risk & Volatility

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

Earnings & Valuation

This table compares Envestnet and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Envestnet $629.84 million $56.65 million -42.05
Envestnet Competitors $1.27 billion $348.15 million 37.72

Envestnet’s peers have higher revenue and earnings than Envestnet. Envestnet 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.

Summary

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

Envestnet Company Profile

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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