LogMein (NASDAQ: LOGM) is one of 186 public companies in the “IT Services & Consulting” industry, but how does it contrast to its rivals? We will compare LogMein to similar businesses based on the strength of its dividends, valuation, risk, profitability, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for LogMein and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LogMein 0 0 8 0 3.00
LogMein Competitors 731 4680 7450 169 2.54

LogMein currently has a consensus target price of $141.00, suggesting a potential upside of 20.82%. As a group, “IT Services & Consulting” companies have a potential upside of 3.11%. Given LogMein’s stronger consensus rating and higher probable upside, equities research analysts clearly believe LogMein is more favorable than its rivals.

Risk and Volatility

LogMein has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500. Comparatively, LogMein’s rivals have a beta of 1.15, suggesting that their average share price is 15% more volatile than the S&P 500.

Dividends

LogMein pays an annual dividend of $1.00 per share and has a dividend yield of 0.9%. LogMein pays out 909.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “IT Services & Consulting” companies pay a dividend yield of 1.6% and pay out 38.9% of their earnings in the form of a dividend. LogMein lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional & Insider Ownership

99.3% of LogMein shares are held by institutional investors. Comparatively, 61.8% of shares of all “IT Services & Consulting” companies are held by institutional investors. 2.5% of LogMein shares are held by insiders. Comparatively, 16.9% of shares of all “IT Services & Consulting” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares LogMein and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LogMein 1.01% 5.50% 4.23%
LogMein Competitors -20.88% -271.73% -4.70%

Valuation and Earnings

This table compares LogMein and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
LogMein $336.07 million $2.63 million 1,061.01
LogMein Competitors $2.81 billion $293.37 million 345.56

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

Summary

LogMein beats its rivals on 8 of the 15 factors compared.

LogMein Company Profile

LogMeIn, Inc. provides a portfolio of cloud-based service offerings, which helps people and businesses to connect to their workplace, colleagues and customers. The Company’s core cloud-based services are categorized into four business lines: Communications and Collaboration; Engagement and Support; Identity and Access, and Additional Service Offerings. The Company’s communication and collaboration services include GoToMeeting; GoToTraining; GoToWebinar; join.me, join.me pro and join.me enterprise; OpenVoice, and Grasshopper. The Company’s customer engagement and support services include BoldChat; GoToAssist, GoToAssist Corporate and GoToAssist Seeit; LogMeIn Rescue, Rescue Lens and LogMeIn Rescue+Mobile, and Xively. Its identity and access management services include LogMeIn Central, GoToMyPC, LogMeIn Pro and LastPass. Its additional service offerings include LogMeIn Backup, LogMeIn Hamachi and RemotelyAnywhere.

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