Liquidity Services (NASDAQ: LQDT) is one of 197 publicly-traded companies in the “IT Services & Consulting” industry, but how does it compare to its peers? We will compare Liquidity Services to related businesses based on the strength of its institutional ownership, valuation, profitability, earnings, analyst recommendations, dividends and risk.

Analyst Ratings

This is a summary of recent ratings and price targets for Liquidity Services and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liquidity Services 0 1 0 0 2.00
Liquidity Services Competitors 1003 5125 7742 220 2.51

As a group, “IT Services & Consulting” companies have a potential upside of 3.01%. Given Liquidity Services’ peers stronger consensus rating and higher possible upside, analysts plainly believe Liquidity Services has less favorable growth aspects than its peers.

Profitability

This table compares Liquidity Services and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Liquidity Services -27.52% -16.59% -10.35%
Liquidity Services Competitors -24.49% -65.40% -4.44%

Valuation and Earnings

This table compares Liquidity Services and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Liquidity Services $287.16 million -$24.12 million -2.31
Liquidity Services Competitors $2.11 billion $365.95 million 11.99

Liquidity Services’ peers have higher revenue and earnings than Liquidity Services. Liquidity Services is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

67.6% of Liquidity Services shares are held by institutional investors. Comparatively, 61.0% of shares of all “IT Services & Consulting” companies are held by institutional investors. 22.3% of Liquidity Services shares are held by company insiders. Comparatively, 17.0% of shares of all “IT Services & Consulting” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Liquidity Services has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Liquidity Services’ peers have a beta of 1.26, suggesting that their average share price is 26% more volatile than the S&P 500.

Summary

Liquidity Services peers beat Liquidity Services on 9 of the 12 factors compared.

About Liquidity Services

Liquidity Services, Inc. operates a network of e-commerce marketplaces that enable buyers and sellers to transact in an automated environment. The Company employs e-commerce marketplace solutions to manage, value and sell inventory and equipment for business and government clients. The Company’s marketplaces provide professional buyers access to a global supply of new, surplus and scrap assets presented with digital images and other relevant product information. Additionally, the Company enables its corporate and government sellers to enhance their financial return on assets offered for sale by providing a liquid marketplace and value-added services. The Company’s range of services include program management, valuation, asset management, reconciliation, Return to Vendor and Returns Management Authorization (RTV and RMA), refurbishment and recycling, fulfillment, marketing and sales, warehousing and transportation, buyer customer support, and compliance and risk mitigation.

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