Comparing Ellie Mae (ELLI) & QAD (QADB)

Ellie Mae (NYSE:ELLI) and QAD (NASDAQ:QADB) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Earnings and Valuation

This table compares Ellie Mae and QAD’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 5.65 $52.85 million $1.03 65.62
QAD $305.02 million 1.98 -$9.06 million N/A N/A



Ellie Mae has higher revenue and earnings than QAD.

Profitability

This table compares Ellie Mae and QAD’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ellie Mae 7.11% 4.78% 4.24%
QAD 0.10% 0.08% 0.03%

Institutional & Insider Ownership

1.9% of QAD shares are owned by institutional investors. 3.1% of Ellie Mae shares are owned by company insiders. Comparatively, 67.4% of QAD shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

QAD pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. Ellie Mae does not pay a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Ellie Mae and QAD, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ellie Mae 5 5 5 0 2.00
QAD 0 0 0 0 N/A

Ellie Mae presently has a consensus target price of $83.21, indicating a potential upside of 23.12%. Given Ellie Mae’s higher probable upside, research analysts plainly believe Ellie Mae is more favorable than QAD.

Risk and Volatility

Ellie Mae has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500. Comparatively, QAD has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.

Summary

Ellie Mae beats QAD on 9 of the 12 factors compared between the two stocks.

About Ellie Mae

Ellie Mae, Inc. provides cloud-based platform for the mortgage finance industry in the United States. The company provides Encompass, a proprietary software solution that combines lead management; loan origination and processing; underwriting; preparation of mortgage applications, disclosure agreements, and closing documents; loan funding and closing; compliance with regulatory and investor requirements; and enterprise management. Its platform also offers Encompass Lending Platform and Encompass Developer Connect Solution, and Encompass Data Connect; and sales and marketing solutions, such as Encompass CRM, Velocify, Encompass WebCenter, Encompass Consumer Connect, Encompass TPO WebCenter, Encompass TPO Connect, and Encompass Loan Officer Connect. In addition, the company provides loan quality and compliance solutions, including Ellie Mae Total Quality Loan Program, Encompass Compliance Service, Encompass 4506-T Service, Encompass Flood Service, and Encompass Fraud Service. Further, it offers efficient processing and closing solutions, such as Encompass Electronic Document Management, Encompass Docs, Encompass Appraisal Center, and Encompass Title & Closing Center; and integrated pricing and secondary marketing solutions, including Encompass Product and Pricing Service, Encompass Secondary Marketing, and Encompass Data and Docs Delivery. Additionally, the company provides education and training; and loan product, policy, and guideline data and analytics services under the AllRegs brand. Ellie Mae, Inc. was founded in 1997 and is headquartered in Pleasanton, California.

About QAD

QAD Inc. provides enterprise software solutions for manufacturing companies in the automotive, life sciences, consumer products, food and beverage, high technology, and industrial products industries worldwide. The company offers QAD Enterprise Applications, an integrated suite of software applications, which support the core business processes. Its QAD Enterprise Applications include software solutions, such as QAD Financials to manage and control finance and accounting processes; QAD Customer Management for manufacturers to acquire new customers; QAD Manufacturing, which supports manufacturing business processes; QAD Automation Solutions that improve manufacturers' material transaction processing; QAD Demand and Supply Chain Planning that fulfills materials planning and logistics requirements; QAD Supply Chain Execution that offers tools to support inventory and warehouse management; and QAD Transportation Management to manage and optimize outside carriers for shipments. The company's QAD Enterprise Applications also comprise suites, such as QAD Service and Support that handles service calls, manages service queues, and organizes mobile field resources; QAD Enterprise Asset Management to manage, maintain, and install capital equipment; Action Centers with Embedded Analytics; and QAD Analytics that provides data to measure performance. It also offers QAD Enterprise Quality Management that provides quality management and regulatory compliance solutions; QAD Interoperability, which integrates QAD Enterprise Applications with other non-QAD core business applications; and QAD Internationalization, which supports companies that manufacture and distribute their products worldwide. In addition, it provides customer support, product updates, maintenance, and professional services. The company markets its products through direct and indirect sales channels; and distributors and sales agents. QAD Inc. was founded in 1979 and is headquartered in Santa Barbara, California.

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