Financial Contrast: LegalZoom.com (LZ) vs. Its Competitors

LegalZoom.com (NASDAQ:LZGet Rating) is one of 141 publicly-traded companies in the “Data processing & preparation” industry, but how does it contrast to its competitors? We will compare LegalZoom.com to similar companies based on the strength of its dividends, institutional ownership, profitability, valuation, risk, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for LegalZoom.com and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LegalZoom.com 0 4 6 0 2.60
LegalZoom.com Competitors 772 3329 5032 106 2.48

LegalZoom.com presently has a consensus target price of $26.25, suggesting a potential upside of 127.67%. As a group, “Data processing & preparation” companies have a potential upside of 76.84%. Given LegalZoom.com’s stronger consensus rating and higher possible upside, analysts clearly believe LegalZoom.com is more favorable than its competitors.

Earnings and Valuation

This table compares LegalZoom.com and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
LegalZoom.com $575.08 million -$108.66 million -14.97
LegalZoom.com Competitors $895.35 million -$10.28 million 0.62

LegalZoom.com’s competitors have higher revenue and earnings than LegalZoom.com. LegalZoom.com is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

51.2% of LegalZoom.com shares are held by institutional investors. Comparatively, 52.3% of shares of all “Data processing & preparation” companies are held by institutional investors. 18.8% of shares of all “Data processing & preparation” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares LegalZoom.com and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LegalZoom.com -21.77% N/A -30.66%
LegalZoom.com Competitors -38.14% -1,422.01% -6.04%

Summary

LegalZoom.com competitors beat LegalZoom.com on 7 of the 12 factors compared.

About LegalZoom.com (Get Rating)

LegalZoom.com, Inc. operates an online platform for legal and compliance solutions in the United States. The company's platform offers products and services, including business formations, creating estate planning documents, protecting intellectual property, completing certain forms and agreements, providing access to independent attorney advice, and connecting customers with experts for tax preparation and bookkeeping services. It serves small businesses and individuals. LegalZoom.com, Inc. was incorporated in 1999 and is headquartered in Glendale, California.

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