Financial Review: Envestnet (NYSE:ENV) versus OLO (NYSE:OLO)

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

Volatility & Risk

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

Institutional and Insider Ownership

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

Profitability

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

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

Valuation and Earnings

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

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

OLO has lower revenue, but higher earnings 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.

Analyst Ratings

This is a breakdown of current ratings and price targets for Envestnet and OLO, as reported by MarketBeat.com.

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

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

Summary

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

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.

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.