ReachLocal (NASDAQ: RLOC) is one of 36 publicly-traded companies in the “Advertising & Marketing” industry, but how does it compare to its competitors? We will compare ReachLocal to related companies based on the strength of its profitability, earnings, analyst recommendations, institutional ownership, valuation, risk and dividends.

Risk & Volatility

ReachLocal has a beta of -0.18, meaning that its share price is 118% less volatile than the S&P 500. Comparatively, ReachLocal’s competitors have a beta of 1.04, meaning that their average share price is 4% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for ReachLocal and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ReachLocal 0 0 0 0 N/A
ReachLocal Competitors 81 541 932 17 2.56

As a group, “Advertising & Marketing” companies have a potential upside of 18.60%. Given ReachLocal’s competitors higher possible upside, analysts plainly believe ReachLocal has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares ReachLocal and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
ReachLocal N/A N/A -2.77
ReachLocal Competitors $1.13 billion $150.93 million 16.58

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

Institutional & Insider Ownership

57.8% of shares of all “Advertising & Marketing” companies are held by institutional investors. 21.0% of shares of all “Advertising & Marketing” companies are held by 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.

Profitability

This table compares ReachLocal and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ReachLocal -5.20% N/A -15.27%
ReachLocal Competitors -6.57% -9.05% -2.81%

Summary

ReachLocal competitors beat ReachLocal on 6 of the 8 factors compared.

ReachLocal Company Profile

ReachLocal, Inc. (ReachLocal) offers a range of online marketing and reporting solutions. The Company’s digital marketing solution consists of products and solutions in three categories: digital advertising (including ReachSearch, ReachDisplay, ReachDisplay InApp and ReachRetargeting); Web presence (including ReachSite+ReachEdge, ReachSEO, ReachCast, ReachListings and TotalLiveChat), and software (ReachEdge and Kickserv). It focuses on small to medium-sized businesses (SMBs). The Company delivers its suite of products and solutions to local businesses through a combination of its technology platform, its direct inside and outside sales force, and select third-party agencies and resellers. It also focuses on certain core verticals, which include home services, professional services, specialty services and healthcare. It also provides solutions to multi-location advertisers, such as franchises and other businesses that have multiple locations across a number of cities and states.

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