Financial Review: LegalZoom.com (NASDAQ:LZ) and LiveVox (NASDAQ:LVOX)

LegalZoom.com (NASDAQ:LZGet Rating) and LiveVox (NASDAQ:LVOXGet Rating) are both industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.

Institutional & Insider Ownership

51.2% of LegalZoom.com shares are held by institutional investors. Comparatively, 83.6% of LiveVox shares are held by institutional investors. 20.0% of LiveVox shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for LegalZoom.com and LiveVox, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LegalZoom.com 0 4 6 0 2.60
LiveVox 0 2 4 0 2.67

LegalZoom.com currently has a consensus price target of $26.25, suggesting a potential upside of 120.59%. LiveVox has a consensus price target of $8.17, suggesting a potential upside of 281.62%. Given LiveVox’s stronger consensus rating and higher probable upside, analysts plainly believe LiveVox is more favorable than LegalZoom.com.

Earnings and Valuation

This table compares LegalZoom.com and LiveVox’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LegalZoom.com $575.08 million 4.11 -$108.66 million ($0.77) -15.45
LiveVox $119.23 million 1.76 -$103.19 million ($1.47) -1.46

LiveVox has lower revenue, but higher earnings than LegalZoom.com. LegalZoom.com is trading at a lower price-to-earnings ratio than LiveVox, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares LegalZoom.com and LiveVox’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LegalZoom.com -21.77% -1,446.94% -29.38%
LiveVox -90.78% -86.50% -50.63%

Summary

LiveVox beats LegalZoom.com on 7 of the 13 factors compared between the two stocks.

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.

About LiveVox (Get Rating)

LiveVox Holding, Inc. develops and markets cloud-based contact-center-as-a-service customer engagement platform primarily in the United States. Its products include Contact Manager and Extract, Transform, and Load Tools, a database layer that functions as a repository and orchestration layer for customers and their customer records; U-CRM, a visual layer that provides relevant customer details to agents; U-Ticket that creates support tickets and tracks all the relevant details to solve issues; U-Script, a visual agent flow tool to provide guidance and visual navigation to agents; and Attempt Supervisor, which enables contact centers to set rules and restrictions relative to the number of voice calls attempted to any particular phone number and/or account. The company also offers inbound voice services and features; outbound voice applications, including predictive and unattended dialing, outbound interactive voice response, manual dialing, and human call initiator; IVR and contact flow, such as drag-and-drop features, pre-built modules, text to speech, professionally recorded voice prompts, and omnichannel capabilities; and various dashboard and reporting interfaces; SMS Messaging; campaign and email response capabilities; WebChat that provides services through a web-based or mobile channels; Virtual Agents & Bots; and Campaign management tools. In addition, it provides workforce optimization solutions consisting of call and screen recording, business intelligence, quality management, outside collection agency, and speech and text analytics, agent scheduling, customer satisfaction, and administration and application programming interfaces; and professional services, such as application configuration, system integration, business process optimization, technical support, and training. It serves financial services, healthcare, consumer/retail, and telecommunications industries. The company was founded in 1998 and is headquartered in San Francisco, California.

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