Head-To-Head Comparison: ePlus (NASDAQ:PLUS) versus TomTom (OTCMKTS:TMOAF)

ePlus (NASDAQ:PLUS) and TomTom (OTCMKTS:TMOAF) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.

Profitability

This table compares ePlus and TomTom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ePlus	4.98%	12.32%	6.70%
TomTom	N/A	N/A	N/A

Valuation and Earnings

This table compares ePlus and TomTom”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ePlus	$2.20 billion	1.07	$115.78 million	$4.33	20.09
TomTom	N/A	N/A	N/A	$0.11	46.51

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

Analyst Recommendations

This is a summary of current recommendations and price targets for ePlus and TomTom, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ePlus	0	2	0	0	2.00
TomTom	0	0	0	0	N/A

ePlus currently has a consensus target price of $86.50, suggesting a potential downside of 0.56%. Given ePlus’ higher possible upside, equities analysts plainly believe ePlus is more favorable than TomTom.

Insider and Institutional Ownership

93.8% of ePlus shares are held by institutional investors. Comparatively, 7.9% of TomTom shares are held by institutional investors. 2.4% of ePlus shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

ePlus beats TomTom on 8 of the 9 factors compared between the two stocks.

About ePlus

ePlus inc., together with its subsidiaries, provides information technology (IT) solutions that enable organizations to optimize their IT environment and supply chain processes in the United States and internationally. It operates through two segments, Technology and Financing. The Technology segment offers hardware, perpetual and subscription software, maintenance, software assurance, and internally provided and outsourced services; managed services or infrastructure and cloud; and enhanced maintenance support, service desk, storage-as-a-service, cloud hosted and managed, and managed security services; and professional, staff augmentation, cloud consulting, consulting, and security services. The Financing segment engages in financing arrangements, such as sales-type and operating leases; loans and consumption-based financing arrangements; and underwriting, management, and disposal of IT equipment and assets. Its financing operations comprise sales, pricing, credit, contracts, accounting, and risk and asset management. This segment primarily finances IT, communication-related, and medical equipment; and industrial machinery and equipment, office furniture and general office equipment, transportation equipment, and other general business equipment directly, as well as through vendors. The company serves commercial entities, state and local governments, government contractors, healthcare, and educational institutions. The company was formerly known as MLC Holdings, Inc. and changed its name to ePlus inc. in 1999. ePlus inc. was founded in 1990 and is headquartered in Herndon, Virginia.

About TomTom

TomTom NV is engaged in the developing of location technology including maps, navigation software, real-time traffic information, and other services. It operates through the following segments: Location Technology and Consumer. The Location Technology segment is involved in the developing and selling of location based application components, such as maps, services and navigation software to customers in different market segments. The Consumer segment generates revenue from the sale of portable navigation devices and mobile applications. The company was founded by Pieter Andreas Geelen, Harold Goddijn, Corinne Danièle Goddijn-Vigreux, and Peter-Frans Pauwels in 1991 and is headquartered in Amsterdam, the Netherlands.