Envestnet (NYSE:ENV – Get Rating) and Loyalty Ventures (NASDAQ:LYLT – Get Rating) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.
Analyst Recommendations
This is a breakdown of current ratings for Envestnet and Loyalty Ventures, as provided by MarketBeat.
Get Envestnet alerts:| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Envestnet | 0 | 2 | 4 | 1 | 2.86 |
| Loyalty Ventures | 0 | 1 | 2 | 0 | 2.67 |
Envestnet presently has a consensus target price of $72.33, indicating a potential upside of 43.78%. Loyalty Ventures has a consensus target price of $10.00, indicating a potential upside of 429.10%. Given Loyalty Ventures' higher probable upside, analysts clearly believe Loyalty Ventures is more favorable than Envestnet.
Institutional & Insider Ownership
75.2% of Loyalty Ventures shares are held by institutional investors. 1.4% of Envestnet shares are held by insiders. Comparatively, 0.2% of Loyalty Ventures shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.Profitability
This table compares Envestnet and Loyalty Ventures' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Envestnet | -2.42% | 7.52% | 3.23% |
| Loyalty Ventures | -64.35% | 8.58% | 0.88% |
Valuation and Earnings
This table compares Envestnet and Loyalty Ventures' revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Envestnet | $1.19 billion | 2.34 | $13.30 million | ($0.55) | -91.47 |
| Loyalty Ventures | $735.31 million | 0.06 | -$2.34 million | ($19.21) | -0.10 |
Envestnet has higher revenue and earnings than Loyalty Ventures. Envestnet is trading at a lower price-to-earnings ratio than Loyalty Ventures, indicating that it is currently the more affordable of the two stocks.
Summary
Envestnet beats Loyalty Ventures on 10 of the 14 factors compared between the two stocks.
About Envestnet
(Get Rating)
Envestnet, Inc., together with its subsidiaries, provides wealth management software and services in the United States and internationally. It operates through Envestnet Wealth Solutions and Envestnet Data & Analytics segments. The company's product and services include Envestnet | Enterprise, which provides an end-to-end open architecture wealth management platform, as well as offers data aggregation and reporting, data analytics, and digital advice capabilities; Envestnet | Tamarac that 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. It also provides Envestnet | Retirement Solutions, which offer a suite of services for advisor-sold retirement plans; and Envestnet | Portfolio Management Consultants that provide research and consulting services to assist advisors in creating investment solutions for their clients, and portfolio overlay and tax optimization services, as well as data aggregation and data intelligence platform, which offers cloud-based innovation for digital financial services. Envestnet, Inc. was founded in 1999 and is headquartered in Chicago, Illinois.
About Loyalty Ventures
(Get Rating)
Loyalty Ventures Inc. provides consumer loyalty solutions. The company owns and operates the AIR MILES Reward Program, an end-to-end loyalty platform; and BrandLoyalty, a campaign-based loyalty solution for grocers and other high-frequency retailers. It also offers marketing, customer, and rewards and redemption management services for sponsors. The company helps financial services providers, retailers, and other consumer-facing businesses to create and increase customer loyalty across various touchpoints. Loyalty Ventures Inc. was incorporated in 2021 and is based in Plano, Texas.
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