Analyzing Envestnet (NYSE:ENV) and OLO (NYSE:OLO)

OLO (NYSE:OLO) and Envestnet (NYSE:ENV) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.

Institutional and Insider Ownership

93.4% of OLO shares are held by institutional investors. 39.3% of OLO shares are held by company insiders. Comparatively, 8.9% of Envestnet shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares OLO and Envestnet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OLO	-5.89%	0.34%	0.30%
Envestnet	-19.56%	20.65%	6.21%

Risk & Volatility

OLO has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, Envestnet has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for OLO and Envestnet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OLO	0	0	2	0	3.00
Envestnet	0	7	1	0	2.13

OLO currently has a consensus target price of $8.50, indicating a potential upside of 10.10%. Envestnet has a consensus target price of $61.88, indicating a potential downside of 2.00%. Given OLO’s stronger consensus rating and higher possible upside, research analysts clearly believe OLO is more favorable than Envestnet.

Earnings & Valuation

This table compares OLO and Envestnet”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OLO	$271.87 million	4.65	-$58.29 million	($0.10)	-77.20
Envestnet	$1.34 billion	2.61	-$238.72 million	($4.77)	-13.24

OLO has higher earnings, but lower revenue than Envestnet. OLO is trading at a lower price-to-earnings ratio than Envestnet, indicating that it is currently the more affordable of the two stocks.

Summary

OLO beats Envestnet on 10 of the 14 factors compared between the two stocks.

About OLO

Olo Inc. operates an open SaaS platform for restaurants in the United States. The company’s platform enables on-demand digital commerce operations, which cover digital ordering, delivery, front-of-house management, and payments. Its solutions include Order, a suite of solutions powering restaurant brands’ on-demand commerce operations, enabling digital ordering, delivery, and channel management through ordering, dispatch, rails, switchboard, network, virtual brands, kiosk, catering, and sync modules; Engage, a suite of restaurant-centric marketing solutions optimizing guest lifetime value by strengthening and enhancing the restaurants’ direct guest relationships, through the guest data platform, marketing, sentiment, and host modules; and Pay, a frictionless payment platform that enables restaurants to grow and protect their digital business through customer payment experience that offers advanced fraud prevention to improve authorization rates for valid transactions, and increase basket conversion through its Olo Pay module. The company was formerly known as Mobo Systems, Inc. and changed its name to Olo Inc. in January 2020. Olo Inc. was incorporated in 2005 and is headquartered in New York, New York.

About Envestnet

Envestnet, Inc., through its subsidiaries, provides wealth management software and services in the United States and internationally. It operates through two segments: Envestnet Wealth Solutions and Envestnet Data & Analytics. The Envestnet Wealth Solutions segment offers Envestnet | Enterprise, an end-to-end open architecture wealth management platform, as well as offers data aggregation and reporting, data analytics, and digital advice capabilities; Envestnet | Wealth Analytics that transforms data into actionable intelligence; Envestnet | Tamarac which provides trading, rebalancing, portfolio accounting, performance reporting, and client relationship management software; and Envestnet | MoneyGuide that provides goals-based financial planning solutions to the financial services industry. This segment also provides Envestnet | Workplace Solutions which offers a suite of services for advisor-sold retirement plans; Envestnet | PMC that offer research and consulting services to assist advisors in creating investment solutions, and portfolio overlay and tax optimization services; and Envestnet | Billing Solutions which provides revenue management and hosted fee-billing solutions. The Envestnet Data & Analytics segment provides Envestnet Data & Analytics, a data aggregation, analytics, and digital experiences platform that provides clients and their account holders with data connectivity via open APIs, data enrichment, AI-based analytics, and digital experiences. It serves retail banks, credit unions, credit card providers, wealth management financial advisors and institutions, financial technology innovators, financial advisory firms, research and analyst firms, personal financial management, small business accounting, e-commerce, payment solutions providers, small business lending, and authentication customers. The company was founded in 1999 and is headquartered in Berwyn, Pennsylvania.