Coupa Software (COUP) versus Ellie Mae (ELLI) Critical Analysis

Share on StockTwits

Coupa Software (NYSE: ELLI) and Ellie Mae (NYSE:ELLI) are both mid-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Risk and Volatility

Coupa Software has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Ellie Mae has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Coupa Software -22.52% -16.73% -7.58%
Ellie Mae 7.81% 4.50% 4.05%

Institutional & Insider Ownership

97.8% of Coupa Software shares are held by institutional investors. 6.5% of Coupa Software shares are held by company insiders. Comparatively, 3.1% of Ellie Mae shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Coupa Software and Ellie Mae’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Coupa Software $186.78 million 24.27 -$43.80 million ($0.76) -102.74
Ellie Mae $417.04 million 8.01 $52.85 million $1.03 93.64

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

Analyst Ratings

This is a summary of current ratings and price targets for Coupa Software and Ellie Mae, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Coupa Software 0 7 8 0 2.53
Ellie Mae 2 6 6 0 2.29

Coupa Software currently has a consensus target price of $62.20, indicating a potential downside of 20.34%. Ellie Mae has a consensus target price of $108.54, indicating a potential upside of 12.53%. Given Ellie Mae’s higher probable upside, analysts plainly believe Ellie Mae is more favorable than Coupa Software.

Summary

Ellie Mae beats Coupa Software on 8 of the 14 factors compared between the two stocks.

Coupa Software Company Profile

Coupa Software Incorporated provides cloud-based spend management platform. The company's platform connects organization with suppliers globally; and provides visibility into and control over how companies spend money, as well as enables businesses to achieve savings that drive profitability. Its platform consists of procurement, invoicing, and expense management modules that form its transactional engine and capture a company's spend; and offers supporting modules, including sourcing, spend analysis, contract management, supplier management, and inventory management. The company markets its platform to a range of enterprises in various industries, such as healthcare and pharmaceuticals, retail, financial services, manufacturing, technology, and others primarily through a direct sales force worldwide. The company was founded in 2006 and is headquartered in San Mateo, California.

Ellie Mae Company Profile

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.

Receive News & Ratings for Coupa Software Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Coupa Software and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply