Analyzing Envestnet (NYSE:ENV) and TuanChe (NASDAQ:TC)

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

Institutional and Insider Ownership

8.9% of TuanChe shares are owned by institutional investors. 8.9% of Envestnet shares are owned by insiders. Comparatively, 0.5% of TuanChe shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Envestnet and TuanChe’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%
TuanChe	N/A	N/A	N/A

Risk and Volatility

Envestnet has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, TuanChe has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Envestnet and TuanChe, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Envestnet	0	7	1	0	2.13
TuanChe	0	0	0	0	0.00

Envestnet currently has a consensus target price of $61.88, suggesting a potential downside of 1.69%. Given Envestnet’s stronger consensus rating and higher possible upside, research analysts clearly believe Envestnet is more favorable than TuanChe.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Envestnet	$1.25 billion	2.80	-$238.72 million	($4.77)	-13.19
TuanChe	$22.87 million	0.06	-$11.69 million	N/A	N/A

TuanChe has lower revenue, but higher earnings than Envestnet.

Summary

Envestnet beats TuanChe on 9 of the 12 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 TuanChe

TuanChe Limited, through its subsidiaries, operates as an omni-channel automotive marketplace in China and internationally. It organizes auto shows and special promotion events; and provides integrated marketing solutions to industry customers, which include automakers, franchised dealerships, secondary dealers, and automotive service providers, as well as enable interactions between participants on both sides of a potential transaction. The company also offers business and technical support, and consulting services; online marketing services through various online platforms, including tuanche.com website, WeChat account, WeChat mini-program, mobile applications, and Cheshangtong, a SaaS product; and referral services for commercial bank to enhance its auto loan business. The company has a strategic partnership with Alibaba Group's Tmall; and Beijing Easyhome Furnishing Chain Group Co., Ltd. TuanChe Limited was founded in 2010 and is headquartered in Beijing, China.