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

Volatility & Risk

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 rivals have a beta of 1.04, meaning that their average share price is 4% more volatile than the S&P 500.

Valuation and Earnings

This table compares Ellie Mae and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Ellie Mae $360.29 million $37.77 million 59.42
Ellie Mae Competitors $1.76 billion $288.64 million 43.44

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

Profitability

This table compares Ellie Mae and its rivals’ 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 & Institutional Ownership

61.0% of shares of all “Enterprise Software” companies are held by institutional investors. 3.4% of Ellie Mae shares are held by company insiders. Comparatively, 22.2% of shares of all “Enterprise Software” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Ellie Mae and its rivals, as reported 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 377 2215 4158 121 2.59

Ellie Mae presently has a consensus price target of $113.10, indicating a potential upside of 26.06%. As a group, “Enterprise Software” companies have a potential upside of 4.38%. Given Ellie Mae’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Ellie Mae is more favorable than its rivals.

Summary

Ellie Mae beats its rivals 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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