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

Earnings and Valuation

This table compares Ellie Mae and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Ellie Mae $360.29 million $37.77 million 58.61
Ellie Mae Competitors $1.76 billion $288.64 million 47.38

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

Risk and Volatility

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Ellie Mae and its competitors, 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 375 2212 4150 120 2.59

Ellie Mae currently has a consensus target price of $113.10, suggesting a potential upside of 27.80%. As a group, “Enterprise Software” companies have a potential upside of 6.21%. Given Ellie Mae’s stronger consensus rating and higher probable upside, research analysts plainly believe Ellie Mae is more favorable than its competitors.

Profitability

This table compares Ellie Mae and its competitors’ 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 -22.31% -213.12% -7.21%

Insider and Institutional 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 hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Ellie Mae beats its competitors on 7 of the 13 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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