Reviewing IperionX (NASDAQ:IPX) & LegalZoom.com (NASDAQ:LZ)

IperionX (NASDAQ:IPX) and LegalZoom.com (NASDAQ:LZ) are both small-cap industrials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IperionX	N/A	N/A	-$21.84 million	N/A	N/A
LegalZoom.com	$681.88 million	2.79	$29.96 million	$0.16	65.94

LegalZoom.com has higher revenue and earnings than IperionX.

Insider and Institutional Ownership

2.8% of IperionX shares are held by institutional investors. Comparatively, 82.0% of LegalZoom.com shares are held by institutional investors. 5.9% of LegalZoom.com shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IperionX	0	0	2	0	3.00
LegalZoom.com	1	5	2	0	2.13

IperionX presently has a consensus price target of $46.00, suggesting a potential upside of 5.80%. LegalZoom.com has a consensus price target of $10.83, suggesting a potential upside of 2.69%. Given IperionX’s stronger consensus rating and higher probable upside, equities analysts plainly believe IperionX is more favorable than LegalZoom.com.

Volatility and Risk

IperionX has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, LegalZoom.com has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
IperionX	N/A	N/A	N/A
LegalZoom.com	4.07%	20.36%	6.05%

Summary

LegalZoom.com beats IperionX on 8 of the 10 factors compared between the two stocks.

About IperionX

IperionX’s mission is to be the leading developer of low carbon, sustainable, critical material supply chains focused on advanced industries including space, aerospace, electric vehicles and 3D printing. IperionX’s breakthrough titanium technologies have demonstrated the potential to produce titanium products that are sustainable, 100% recyclable, have low carbon intensity and to do so at product qualities that meet or exceed current industry standards. The Company also holds a 100% interest in the Titan Project, covering approximately 11,100 acres of titanium, rare earth minerals, high grade silica sand and zircon rich mineral sands properties in Tennessee.

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.