Head to Head Analysis: LegalZoom.com (NASDAQ:LZ) versus NantHealth (NASDAQ:NH)

LegalZoom.com (NASDAQ:LZ) and NantHealth (NASDAQ:NH) are both small-cap industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LegalZoom.com	2.11%	15.79%	5.74%
NantHealth	-94.67%	N/A	-39.82%

Valuation and Earnings

This table compares LegalZoom.com and NantHealth’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LegalZoom.com	$660.73 million	2.65	$13.95 million	$0.08	116.01
NantHealth	$67.68 million	0.17	-$67.78 million	($7.65)	-0.20

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

Institutional & Insider Ownership

82.0% of LegalZoom.com shares are held by institutional investors. Comparatively, 4.5% of NantHealth shares are held by institutional investors. 10.5% of LegalZoom.com shares are held by insiders. Comparatively, 61.3% of NantHealth shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LegalZoom.com	1	2	4	0	2.43
NantHealth	0	0	0	0	N/A

LegalZoom.com presently has a consensus price target of $14.36, indicating a potential upside of 54.71%. Given LegalZoom.com’s higher possible upside, analysts clearly believe LegalZoom.com is more favorable than NantHealth.

Volatility & Risk

LegalZoom.com has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, NantHealth has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500.

Summary

LegalZoom.com beats NantHealth on 11 of the 13 factors compared between the two stocks.

About LegalZoom.com

LegalZoom.com, Inc., together with its subsidiaries, operates an online platform that supports the legal, compliance, and business management needs of small businesses and consumers in the United States. The company's platform offers business formation products, such as limited liability company, incorporation of C and S corporations, nonprofit formations, doing-business-as, corporate changes and filings, business licenses, legal forms, and beneficial ownership information reports; intellectual property products consisting of trademark and patent applications, and copyright registrations; and tax services, including business and personal tax preparations. It also provides consumer, estate planning, and other services comprising last will and testament, living will, living trust, power of attorney, and name change. In addition, the company offers subscriptions services, including registered agent, compliance, attorney advice, tax advice and preparation, eSignature, virtual mail and check deposit services, trademark monitoring, and estate planning bundle. The company was incorporated in 1999 and is headquartered in Glendale, California.

About NantHealth

NantHealth, Inc. engages in the provision of enterprise solutions that help businesses transform complex data into actionable insights. It is also involved in marketing solutions as a comprehensive integrated solution that includes clinical decision support, payer engagement solutions, data analysis, and network monitoring and management. The company was founded by Patrick Soon-Shiong on July 7, 2010 and is headquartered in Morrisville, NC.