Reviewing Ellie Mae (ELLI) and Mobileye (MBBYF)

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

Analyst Ratings

This is a breakdown of recent recommendations for Ellie Mae and Mobileye, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ellie Mae 2 6 6 0 2.29
Mobileye 0 0 0 0 N/A

Ellie Mae currently has a consensus target price of $107.31, indicating a potential upside of 22.68%. Given Ellie Mae’s higher possible upside, equities research analysts plainly believe Ellie Mae is more favorable than Mobileye.

Profitability

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

Net Margins Return on Equity Return on Assets
Ellie Mae 7.81% 4.50% 4.05%
Mobileye N/A N/A N/A

Institutional & Insider Ownership

0.1% of Mobileye shares are held by institutional investors. 3.1% of Ellie Mae shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Ellie Mae and Mobileye’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 7.27 $52.85 million $1.03 84.92
Mobileye $358.16 million 39.18 $108.37 million N/A N/A

Mobileye has lower revenue, but higher earnings than Ellie Mae.

Volatility and Risk

Ellie Mae has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, Mobileye has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.

Summary

Ellie Mae beats Mobileye on 8 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 Mobileye

Mobileye N.V., together with its subsidiaries, develops computer vision and machine learning-based sensing products, mapping and driving policy technology solutions for advanced driver assistance systems, and autonomous driving technologies. It operates through two segments, Original Equipment Manufacturing and After Market. The company's sensing products detect vehicles, pedestrians, and general objects, as well as detects roadway markings, such as lanes, road boundaries, barriers, and similar items; identifies and reads traffic signs, directional signs, and traffic lights; and provides mapping for autonomous driving. Its sensing products and technologies also creates a RoadBook of localized drivable paths and visual landmarks using proprietary Road Experience Management technology; and provides proprietary software algorithms and EyeQ chips that perform interpretations of the visual field to anticipate possible collisions with other vehicles, pedestrians, cyclists, animals, debris, and other obstacles. In addition, the company provides enhanced cruise control, pre-lighting of brake lights, and Bluetooth connectivity, as well as related smartphone application. It serves original equipment manufacturers, tier 1 system integrators, fleets and fleet management systems providers, insurance companies, leasing companies, and others through distributors and resellers in the United States, Europe, Asia, and South America. Mobileye N.V. was founded in 1999 and is headquartered in Jerusalem, Israel. As of August 21, 2017, Mobileye N.V. operates as a subsidiary of Intel Corporation.

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