TomTom (OTCMKTS:TMOAF) and ePlus (NASDAQ:PLUS) Financial Review

TomTom (OTCMKTS:TMOAF) and ePlus (NASDAQ:PLUS) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.

Profitability

This table compares TomTom and ePlus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TomTom	N/A	N/A	N/A
ePlus	4.98%	12.32%	6.70%

Insider & Institutional Ownership

7.9% of TomTom shares are held by institutional investors. Comparatively, 93.8% of ePlus shares are held by institutional investors. 2.4% of ePlus shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares TomTom and ePlus”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TomTom	N/A	N/A	N/A	$0.11	46.51
ePlus	$2.20 billion	1.19	$115.78 million	$4.33	22.32

ePlus has higher revenue and earnings than TomTom. ePlus is trading at a lower price-to-earnings ratio than TomTom, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for TomTom and ePlus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TomTom	0	0	0	0	N/A
ePlus	0	2	0	0	2.00

ePlus has a consensus target price of $86.50, suggesting a potential downside of 10.51%. Given ePlus’ higher probable upside, analysts clearly believe ePlus is more favorable than TomTom.

Summary

ePlus beats TomTom on 8 of the 9 factors compared between the two stocks.

About TomTom

TomTom NV is engaged in the developing of location technology including maps, navigation software, real-time traffic information, and other services. It operates through the following segments: Location Technology and Consumer. The Location Technology segment is involved in the developing and selling of location based application components, such as maps, services and navigation software to customers in different market segments. The Consumer segment generates revenue from the sale of portable navigation devices and mobile applications. The company was founded by Pieter Andreas Geelen, Harold Goddijn, Corinne Danièle Goddijn-Vigreux, and Peter-Frans Pauwels in 1991 and is headquartered in Amsterdam, the Netherlands.

About ePlus

ePlus inc., together with its subsidiaries, provides information technology (IT) solutions that enable organizations to optimize their IT environment and supply chain processes in the United States and internationally. It operates through two segments, Technology and Financing. The Technology segment offers hardware, perpetual and subscription software, maintenance, software assurance, and internally provided and outsourced services; managed services or infrastructure and cloud; and enhanced maintenance support, service desk, storage-as-a-service, cloud hosted and managed, and managed security services; and professional, staff augmentation, cloud consulting, consulting, and security services. The Financing segment engages in financing arrangements, such as sales-type and operating leases; loans and consumption-based financing arrangements; and underwriting, management, and disposal of IT equipment and assets. Its financing operations comprise sales, pricing, credit, contracts, accounting, and risk and asset management. This segment primarily finances IT, communication-related, and medical equipment; and industrial machinery and equipment, office furniture and general office equipment, transportation equipment, and other general business equipment directly, as well as through vendors. The company serves commercial entities, state and local governments, government contractors, healthcare, and educational institutions. The company was formerly known as MLC Holdings, Inc. and changed its name to ePlus inc. in 1999. ePlus inc. was founded in 1990 and is headquartered in Herndon, Virginia.