Ellie Mae (NYSE: ELLI) and ServiceNow (NYSE:NOW) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, analyst recommendations, risk, dividends and valuation.
This table compares Ellie Mae and ServiceNow’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This table compares Ellie Mae and ServiceNow’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ellie Mae||$417.04 million||7.89||$52.85 million||$1.48||64.82|
|ServiceNow||$1.93 billion||15.89||-$149.13 million||$0.65||270.49|
Ellie Mae has higher earnings, but lower revenue than ServiceNow. Ellie Mae is trading at a lower price-to-earnings ratio than ServiceNow, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Ellie Mae has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, ServiceNow has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for Ellie Mae and ServiceNow, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ellie Mae presently has a consensus price target of $107.36, suggesting a potential upside of 11.36%. ServiceNow has a consensus price target of $149.75, suggesting a potential downside of 14.91%. Given Ellie Mae’s higher possible upside, research analysts plainly believe Ellie Mae is more favorable than ServiceNow.
ServiceNow beats Ellie Mae on 7 of the 13 factors compared between the two stocks.
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.
ServiceNow, Inc. is provider of enterprise cloud computing solutions that define, structure, manage and automate services for global enterprises. The Company offers a set of cloud-based services that automate workflow within and between departments in an enterprise. It provides workflow solutions, and focuses on service management for customer support, human resources, security operations and other enterprise departments. The platform also enables customers to create, by themselves or with its partners, their own service-oriented business applications throughout the enterprise. The Company delivers its software through the Internet as a service. It markets its services to enterprises in a range of industries, including financial services, consumer products, information technology services, healthcare, government, education and technology. It operates data centers in Australia, Brazil, Canada, Hong Kong, the Netherlands, Singapore, Switzerland, the United Kingdom and the United States.
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