Reviewing GitLab (NASDAQ:GTLB) and Locafy (NASDAQ:LCFY)

Locafy (NASDAQ:LCFY) and GitLab (NASDAQ:GTLB) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Locafy	1	0	0	0	1.00
GitLab	1	7	18	2	2.75

GitLab has a consensus target price of $58.83, suggesting a potential upside of 21.23%. Given GitLab’s stronger consensus rating and higher possible upside, analysts plainly believe GitLab is more favorable than Locafy.

Risk & Volatility

Locafy has a beta of 1.97, indicating that its stock price is 97% more volatile than the S&P 500. Comparatively, GitLab has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.

Profitability

This table compares Locafy and GitLab’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Locafy	N/A	N/A	N/A
GitLab	-0.55%	-2.71%	-1.63%

Valuation and Earnings

This table compares Locafy and GitLab”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Locafy	$2.76 million	2.55	-$1.96 million	($1.23)	-4.15
GitLab	$759.25 million	10.66	-$6.33 million	($0.04)	-1,213.25

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

Insider and Institutional Ownership

0.0% of Locafy shares are owned by institutional investors. Comparatively, 95.0% of GitLab shares are owned by institutional investors. 28.7% of Locafy shares are owned by company insiders. Comparatively, 21.4% of GitLab shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

GitLab beats Locafy on 8 of the 15 factors compared between the two stocks.

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.

About GitLab

GitLab Inc., through its subsidiaries, develops software for the software development lifecycle in the United States, Europe, and the Asia Pacific. It offers GitLab, a DevOps platform, which is a single application that leads to faster cycle time and allows visibility throughout and control over various stages of the DevOps lifecycle. The company helps organizations to plan, build, secure, and deploy software to drive business outcomes. It also provides related training and professional services. The company was formerly known as GitLab B.V. and changed its name to GitLab Inc. in July 2015. GitLab Inc. was founded in 2011 and is headquartered in San Francisco, California.