Head-To-Head Review: Locafy (LCFY) vs. Its Rivals

Locafy (NASDAQ:LCFY) is one of 111 public companies in the “Computer programming, data processing, & other computer related” industry, but how does it contrast to its peers? We will compare Locafy to related businesses based on the strength of its earnings, dividends, institutional ownership, valuation, risk, profitability and analyst recommendations.

Volatility and Risk

Locafy has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Locafy’s peers have a beta of 1.36, indicating that their average stock price is 36% more volatile than the S&P 500.

Valuation & Earnings

This table compares Locafy and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Locafy	$4.29 million	-$2.62 million	-1.40
Locafy Competitors	$9.15 billion	$1.45 billion	15.02

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

Analyst Ratings

This is a summary of current ratings for Locafy and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Locafy	0	0	0	0	N/A
Locafy Competitors	936	4254	9808	274	2.62

As a group, “Computer programming, data processing, & other computer related” companies have a potential upside of 21.98%. Given Locafy’s peers higher probable upside, analysts clearly believe Locafy has less favorable growth aspects than its peers.

Institutional & Insider Ownership

0.2% of Locafy shares are owned by institutional investors. Comparatively, 50.1% of shares of all “Computer programming, data processing, & other computer related” companies are owned by institutional investors. 28.7% of Locafy shares are owned by insiders. Comparatively, 15.2% of shares of all “Computer programming, data processing, & other computer related” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Locafy and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Locafy	-101.91%	-280.87%	-90.18%
Locafy Competitors	-150.53%	-26.26%	-9.71%

Summary

Locafy peers beat Locafy on 8 of the 10 factors compared.

About Locafy

Locafy Limited operates as a software-as-a-service company (SaaS) that specializes in search engine marketing in Australia, New Zealand, Europe, North America, and internationally. The company operates in three segments: Publishing, Direct Sales, and Reseller Sales. It focuses on commercializing its SaaS online publishing technology platform that comprises an integrated suite of solutions. The company also owns and operates several online directories and offers search engine optimization solutions, which include creation of proximity pages and proximity networks, local pages, and map pack booster. In addition, its platform publishes content to various devices that uses a web browser to display web content, as well as programmatically optimizes the published content for local search. The company offers its solutions directly to customers, as well as through digital agencies and search engine optimization freelancers. The company was formerly known as Moboom Limited and changed its name to Locafy Limited in January 2021. Locafy Limited was incorporated in 2009 and is based in Subiaco, Australia.