LegalZoom.com (NASDAQ:LZ – Get Free Report) and Andritz (OTCMKTS:ADRZY – Get Free Report) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.
Risk & Volatility
LegalZoom.com has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Andritz has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for LegalZoom.com and Andritz, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LegalZoom.com | 1 | 5 | 2 | 0 | 2.13 |
| Andritz | 1 | 0 | 1 | 0 | 2.00 |
Profitability
This table compares LegalZoom.com and Andritz’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LegalZoom.com | 4.39% | 28.00% | 6.96% |
| Andritz | 5.88% | 21.98% | 5.93% |
Valuation & Earnings
This table compares LegalZoom.com and Andritz”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 | $690.78 million | 2.34 | $29.96 million | $0.17 | 52.41 |
| Andritz | $9.00 billion | 0.85 | $537.26 million | $1.04 | 14.20 |
Andritz has higher revenue and earnings than LegalZoom.com. Andritz is trading at a lower price-to-earnings ratio than LegalZoom.com, indicating that it is currently the more affordable of the two stocks.
Dividends
LegalZoom.com pays an annual dividend of $1.44 per share and has a dividend yield of 16.2%. Andritz pays an annual dividend of $0.35 per share and has a dividend yield of 2.4%. LegalZoom.com pays out 847.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Andritz pays out 33.7% of its earnings in the form of a dividend.
Institutional and Insider Ownership
82.0% of LegalZoom.com shares are held by institutional investors. 5.9% of LegalZoom.com shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
LegalZoom.com beats Andritz on 11 of the 16 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 Mountain View, California.
About Andritz
Andritz AG provides plants, equipment, and services for pulp and paper industry, metalworking and steel industries, hydropower stations, and solid/liquid separation in the municipal and industrial sectors in Europe, North America, South America, China, Asia, and internationally. It operates through four segments: Pulp & Paper, Metals, Hydro, and Separation. The Pulp & Paper segment supplies technology, automation, and service solutions to produce pulp, paper, board, and tissue; boilers for power generation; flue gas cleaning systems; nonwovens technologies; panelboard production systems; and recycling, shredding, and energy solutions for various waste materials. The Metals segment provides technologies, plants, and digital solutions, including automation and software solutions, and process know-how and services; and solutions for the production and processing of flat products for welding systems and industrial furnaces, as well as services for the metals processing industry. The Hydro segment supplies electromechanical equipment and services for hydropower plants; offers plant diagnosis, refurbishment, modernization, and upgradation of existing hydropower plants; and pumps for irrigation, water supply, and flood control, as well as turbo generators. The Separation segment offers mechanical and thermal technologies, as well as services and related automation solutions for solid/liquid separation to serve chemical, environmental, food, mining, and minerals industries; and technologies and services to produce animal feed and biomass pellets. The company was founded in 1852 and is headquartered in Graz, Austria.
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