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

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ellie Mae 2 5 7 0 2.36
Link Motion 0 0 1 0 3.00

Ellie Mae currently has a consensus price target of $107.31, indicating a potential upside of 25.15%. Link Motion has a consensus price target of $13.00, indicating a potential upside of 2,075.73%. Given Link Motion’s stronger consensus rating and higher probable upside, analysts plainly believe Link Motion is more favorable than Ellie Mae.

Volatility & Risk

Ellie Mae has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, Link Motion has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500.

Earnings & Valuation

This table compares Ellie Mae and Link Motion’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 7.12 $52.85 million $1.03 83.24
Link Motion $57.61 million 1.01 -$27.12 million N/A N/A

Ellie Mae has higher revenue and earnings than Link Motion.

Profitability

This table compares Ellie Mae and Link Motion’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%
Link Motion N/A N/A N/A

Insider and Institutional Ownership

3.8% of Link Motion shares are held by institutional investors. 3.1% of Ellie Mae shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Ellie Mae beats Link Motion on 10 of the 13 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 Link Motion

Link Motion Inc. operates as a smart car and smart ride company in the People's Republic of China and internationally. Its offerings include enabling technology solutions and secure connected carputers for the ecosystem of car businesses; and consumer ride sharing services, as well as mobile security, productivity, and other related applications. The company was formerly known as NQ Mobile Inc. and changed its name to Link Motion Inc. in March 2018. Link Motion Inc. was founded in 2005 and is based in Beijing, the People's Republic of China.

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