HubSpot (NYSE:HUBS) and Locafy (NASDAQ:LCFY) Head to Head Survey

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

Volatility and Risk

Locafy has a beta of 1.95, meaning that its share price is 95% more volatile than the S&P 500. Comparatively, HubSpot has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500.

Profitability

This table compares Locafy and HubSpot’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
HubSpot	1.47%	3.64%	1.95%

Analyst Ratings

This is a summary of recent ratings for Locafy and HubSpot, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Locafy	1	0	0	0	1.00
HubSpot	1	1	27	2	2.97

HubSpot has a consensus price target of $452.70, indicating a potential upside of 94.04%. Given HubSpot’s stronger consensus rating and higher probable upside, analysts plainly believe HubSpot is more favorable than Locafy.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Locafy	$2.07 million	3.93	-$2.79 million	($1.04)	-4.35
HubSpot	$3.13 billion	3.93	$45.91 million	$0.87	268.16

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

Insider & Institutional Ownership

0.0% of Locafy shares are held by institutional investors. Comparatively, 90.4% of HubSpot shares are held by institutional investors. 28.7% of Locafy shares are held by company insiders. Comparatively, 4.0% of HubSpot shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

HubSpot beats Locafy on 12 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 HubSpot

HubSpot, Inc., together with its subsidiaries, provides a cloud-based customer relationship management (CRM) platform for businesses in the Americas, Europe, and the Asia Pacific. The company's CRM platform includes Marketing Hub, a toolset for marketing automation and email, social media, SEO, and reporting and analytics; Sales Hub offers email templates and tracking, conversations and live chat, meeting and call scheduling, lead and website visit alerts, lead scoring, sales automation, pipeline management, quoting, forecasting, and reporting; Service Hub, a service software designed to help businesses manage, respond, and connect with customers; and Content Management Systems Hub enables businesses to create new and edit existing web content. It offers Operations Hub, which is designed to unify customer data, automate business processes, data cleanup, and provide customer insights and connections; and Commerce Hub, a B2B commerce suite. In addition, the company provides professional services to educate and train customers on how to utilize its CRM platform; and customer success, as well as phone and/or email and chat-based support services. It serves mid-market business-to-business companies. The company was incorporated in 2005 and is headquartered in Cambridge, Massachusetts.