Financial Contrast: Bottomline Technologies (NASDAQ:EPAY) & Elastic (NASDAQ:ESTC)
Bottomline Technologies (NASDAQ:EPAY) and Elastic (NYSE:ESTC) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.
Insider and Institutional Ownership
89.8% of Bottomline Technologies shares are owned by institutional investors. Comparatively, 49.1% of Elastic shares are owned by institutional investors. 2.4% of Bottomline Technologies shares are owned by insiders. Comparatively, 51.8% of Elastic shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of recent ratings and recommmendations for Bottomline Technologies and Elastic, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Bottomline Technologies currently has a consensus price target of $60.79, indicating a potential upside of 38.37%. Elastic has a consensus price target of $97.33, indicating a potential upside of 16.92%. Given Bottomline Technologies’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Bottomline Technologies is more favorable than Elastic.
Earnings and Valuation
This table compares Bottomline Technologies and Elastic’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bottomline Technologies||$421.96 million||4.53||$9.43 million||$0.97||45.29|
|Elastic||$271.65 million||23.43||-$102.30 million||($1.80)||-46.25|
Bottomline Technologies has higher revenue and earnings than Elastic. Elastic is trading at a lower price-to-earnings ratio than Bottomline Technologies, indicating that it is currently the more affordable of the two stocks.
This table compares Bottomline Technologies and Elastic’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Bottomline Technologies beats Elastic on 11 of the 14 factors compared between the two stocks.
About Bottomline Technologies
Bottomline Technologies (de), Inc. provides software as a service based solutions. It operates through four segments: Cloud Solutions, Banking Solutions, Payments and Transactional Documents, and Other. The company's products and services include Paymode-X, a cloud-based payment network, which allows businesses to transition to electronic integrated payables; and cloud-based financial messaging solutions that enable banks and corporations to exchange financial information, such as payment instructions, cash reporting, and other messages to facilitate transaction settlement. It also provides digital banking solutions that provide payments, cash management, and online banking solutions to financial institutions; and cloud-based legal spend management solutions and services that integrate with claims management, and time and billing systems to automate legal invoice management processes. In addition, the company offers cyber fraud and risk management solutions that monitor, replay, and analyze user behavior and payment transactions to flag and stop suspicious activity in real time; and payment and document automation solutions to automate a range of business documents and supply chain processes, as well as related Web-based delivery and document archive. Further, it provides healthcare solutions for patient registration, electronic signature, mobile document, and payments; and consulting, project implementation, and training services, as well as sells printers, check papers, and magnetic ink character recognition toners. The company serves customers in the banking, financial services, insurance, healthcare, technology, retail, communications, education, media, manufacturing, and government industries in the United States, the United Kingdom, Continental Europe, the Asia-Pacific, and the Middle East. Bottomline Technologies (de), Inc. was founded in 1989 and is headquartered in Portsmouth, New Hampshire.
Elastic N.V. develops and delivers technology that enables users to search structured and unstructured data for a range of consumer and enterprise applications. It primarily provides Elastic Stack, a set of software products that ingest and store data from various sources and formats, as well as performs search, analysis, and visualization. Its Elastic Stack comprises products, such as Elasticsearch, a distributed, real-time search and analytics engine, and data store for various types of data, including textual, numerical, geospatial, structured, and unstructured; Kibana, a user interface, management, and configuration interface for the Elastic Stack; Beats, a single-purpose data shippers for sending data from edge machines to Elasticsearch or Logstash; and Logstash, a data processing pipeline for ingesting data into Elasticsearch or other storage systems. The company also offers software solutions on the Elastic Stack that address cases, including app search, site search, enterprise search, logging, metrics, application performance monitoring, business analytics, and security analytics. Its products are used by individual developers and organizations of a range of industries. The company was founded in 2012 and is headquartered in Mountain View, California.
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