Ebix (EBIX) & NetSuite (N) Head to Head Survey

Ebix (NASDAQ: EBIX) and NetSuite (NYSE:N) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares Ebix and NetSuite’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ebix 29.08% 21.31% 11.06%
NetSuite -14.00% -42.52% -11.31%

Earnings & Valuation

This table compares Ebix and NetSuite’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ebix $298.29 million 8.84 $93.84 million $3.09 27.14
NetSuite N/A N/A N/A ($1.67) -54.10

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

Dividends

Ebix pays an annual dividend of $0.30 per share and has a dividend yield of 0.4%. NetSuite does not pay a dividend. Ebix pays out 9.7% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Ebix and NetSuite, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ebix 0 0 3 0 3.00
NetSuite 0 0 0 0 N/A

Ebix presently has a consensus price target of $88.50, indicating a potential upside of 5.55%. Given Ebix’s higher possible upside, analysts clearly believe Ebix is more favorable than NetSuite.

Insider and Institutional Ownership

62.9% of Ebix shares are owned by institutional investors. Comparatively, 54.5% of NetSuite shares are owned by institutional investors. 13.8% of Ebix shares are owned by company insiders. Comparatively, 4.6% of NetSuite shares are owned 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.

Summary

Ebix beats NetSuite on 11 of the 12 factors compared between the two stocks.

About Ebix

Ebix, Inc. (Ebix) is a supplier of software and e-commerce solutions to the insurance industry. Ebix provides application software products for the insurance industry, including carrier systems, agency systems and exchanges, as well as custom software development. Ebix conducts its operations through four channels, which include Exchanges, Carrier Systems, Broker Systems and Risk Compliance Solutions (RCS). Ebix operates data exchanges in the areas of life insurance, annuities, employee health benefits, risk management, workers compensation, and property and casualty (P&C) insurance. Ebix designs and deploys back-end systems for P&C insurance brokers across the world. Ebix also designs and deploys on-demand and back-end systems for P&C insurance companies. Ebix focus in RCS channel pertains to business process outsourcing services that include providing project management, time and material consulting to clients across the world, and claims adjudication/settlement services.

About NetSuite

NetSuite Inc. (NetSuite) is a provider of cloud-based financials, enterprise resource planning and omnichannel commerce software suites. The Company offers a suite of applications, including financial management, customer relationship management, e-commerce and retail management, commerce marketing automation, professional services automation and human capital management that enable companies to manage business operations in an integrated suite. The Company also offers customer support and professional services related to the support and implementation of its suite of applications. The Company delivers its applications over the Internet as a subscription service using the software-as-a-service model. The Company’s offerings include NetSuite, NetSuite OneWorld, NetSuite CRM+, NetSuite OpenAir PSA, SuiteCommerce, Bronto Marketing Platform, NetSuite InStore POS, LightCMS, Add-On Modules, NetSuite Industry Editions and SuiteCloud Platform.

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