Reviewing LegalZoom.com (NASDAQ:LZ) and Akerna (NASDAQ:KERN)

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

Insider & Institutional Ownership

71.2% of LegalZoom.com shares are owned by institutional investors. Comparatively, 12.7% of Akerna shares are owned by institutional investors. 45.9% of LegalZoom.com shares are owned by company insiders. Comparatively, 3.0% of Akerna shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

LegalZoom.com has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500. Comparatively, Akerna has a beta of 2.72, indicating that its stock price is 172% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for LegalZoom.com and Akerna, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LegalZoom.com 1 2 4 0 2.43
Akerna 0 3 1 0 2.25

LegalZoom.com currently has a consensus price target of $21.43, indicating a potential upside of 103.11%. Akerna has a consensus price target of $3.33, indicating a potential upside of 2,897.60%. Given Akerna’s higher probable upside, analysts clearly believe Akerna is more favorable than LegalZoom.com.

Profitability

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

Net Margins Return on Equity Return on Assets
LegalZoom.com -17.14% -49.38% -21.24%
Akerna -292.46% -43.50% -25.54%

Earnings and Valuation

This table compares LegalZoom.com and Akerna’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LegalZoom.com $575.08 million 3.57 -$108.66 million ($0.53) -19.91
Akerna $20.68 million 0.43 -$31.33 million ($2.21) -0.05

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

Summary

LegalZoom.com beats Akerna on 9 of the 14 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 Akerna

(Get Rating)

Akerna Corp. provides enterprise software solutions that enable regulatory compliance and inventory management in United States and Canada. The company offers MJ Platform for the cannabis, hemp, and CBD industry; and Leaf Data Systems, a government regulatory software. It also provides consulting services to cannabis industry; business intelligence, data analytics and other software related services; and Last Call Analytics, a tool for alcohol brands to analyze their retail sales analytics. In addition, the company operates seed-to-sale platform that offers tracking, reporting, and compliance tools to cannabis cultivators, processors, sellers, and clinics. Further, it provides cannabis cultivation management and compliance software; and cannabis tracking technology that offers seed-to-sale-to-self data. Akerna Corp. was founded in 2010 and is headquartered in Denver, Colorado.

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