Analyzing Okta (NASDAQ:OKTA) and Ellie Mae (NASDAQ:ELLI)
Ellie Mae (NYSE:ELLI) and Okta (NASDAQ:OKTA) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.
Risk and Volatility
Ellie Mae has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, Okta has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.
This is a summary of current ratings for Ellie Mae and Okta, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ellie Mae presently has a consensus target price of $81.92, suggesting a potential downside of 17.25%. Okta has a consensus target price of $104.83, suggesting a potential downside of 21.26%. Given Ellie Mae’s higher possible upside, equities analysts plainly believe Ellie Mae is more favorable than Okta.
This table compares Ellie Mae and Okta’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Ellie Mae and Okta’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ellie Mae||$480.27 million||7.17||$22.58 million||$1.03||96.11|
|Okta||$399.25 million||38.06||-$125.50 million||($1.03)||-129.26|
Ellie Mae has higher revenue and earnings than Okta. Okta is trading at a lower price-to-earnings ratio than Ellie Mae, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
78.8% of Okta shares are owned by institutional investors. 3.1% of Ellie Mae shares are owned by insiders. Comparatively, 14.7% of Okta shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Ellie Mae beats Okta on 9 of the 14 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. It provides Encompass, an enterprise solution that engages in running the business of originating mortgages, including marketing and 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. The company's Encompass Digital Lending Platform helps lenders and investors across their workflow from the prospective customers to the point of loan delivery. In addition, the company provides education and training services; professional and technical support services; and loan product, policy, and guideline data and analytics services. Ellie Mae, Inc. was founded in 1997 and is headquartered in Pleasanton, California.
Okta, Inc. provides identity solutions for enterprises, small and medium-sized businesses, universities, non-profits, and government agencies in the United States and internationally. The company offers Okta Identity Cloud, a platform that offers a suite of products to manage and secure identities, such as Universal Directory, a cloud-based system of record to store and secure user, application, and device profiles for an organization; Single Sign-On that enables users to access their applications in the cloud or on-premise from various devices with a single entry of their user credentials; Adaptive Multi-Factor Authentication, a product that provides an additional layer of security for cloud, mobile, and Web applications, as well as for data; Lifecycle Management, which enables IT organizations or developers to manage a user's identity throughout its lifecycle; and API Access Management that enables organizations to secure APIs.It also offers customer support and training, and professional services. Okta, Inc. sells its products directly to customers through sales force, as well as through channel partners. The company was formerly known as Saasure, Inc. Okta, Inc. was founded in 2009 and is headquartered in San Francisco, California.
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