Ellie Mae (NASDAQ: ELLI) and Sapiens International Corporation N.V. (NASDAQ:SPNS) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of recent ratings and price targets for Ellie Mae and Sapiens International Corporation N.V., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ellie Mae 0 4 9 0 2.69
Sapiens International Corporation N.V. 0 0 4 0 3.00

Ellie Mae presently has a consensus target price of $113.10, suggesting a potential upside of 30.01%. Sapiens International Corporation N.V. has a consensus target price of $15.00, suggesting a potential upside of 7.30%. Given Ellie Mae’s higher possible upside, equities analysts clearly believe Ellie Mae is more favorable than Sapiens International Corporation N.V..

Insider & Institutional Ownership

11.8% of Sapiens International Corporation N.V. shares are owned by institutional investors. 16.0% of Sapiens International Corporation N.V. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Ellie Mae and Sapiens International Corporation N.V.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Ellie Mae N/A N/A N/A N/A N/A
Sapiens International Corporation N.V. $216.19 million 3.18 $19.33 million $0.07 199.71

Sapiens International Corporation N.V. has higher revenue and earnings than Ellie Mae.

Profitability

This table compares Ellie Mae and Sapiens International Corporation N.V.’s 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%
Sapiens International Corporation N.V. 1.39% 6.77% 4.41%

Summary

Ellie Mae beats Sapiens International Corporation N.V. on 5 of the 9 factors compared between the two stocks.

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.

Sapiens International Corporation N.V. Company Profile

Sapiens International Corporation N.V. (Sapiens) is a provider of software solutions for the insurance industry, with a focus on the financial services sector. The Company operates in provider of software solutions segment. Its software solutions portfolio consists of Life, Pension, Annuity and Retirement Solutions, including software solutions for the management of a range of products for life, pension, annuity and retirement; Property and Casualty/General Insurance Solutions, including a software suite of solutions, supporting a range of business lines, including personal, commercial and specialty lines, as well as a solution for the management of reinsurance contracts; Sapiens DECISION, which is a business decision management solution, and Technology-Based Solutions, such as Sapiens eMerge. Its services include project delivery and implementation, business and technical consulting related to its products, project and program management, training and user acceptance testing.

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