Leaf Group (NYSE: LFGR) is one of 45 publicly-traded companies in the “Internet Services” industry, but how does it compare to its competitors? We will compare Leaf Group to related businesses based on the strength of its valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Insider and Institutional Ownership

63.4% of Leaf Group shares are owned by institutional investors. Comparatively, 69.6% of shares of all “Internet Services” companies are owned by institutional investors. 47.6% of Leaf Group shares are owned by company insiders. Comparatively, 19.4% of shares of all “Internet Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Leaf Group has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Leaf Group’s competitors have a beta of 1.13, indicating that their average stock price is 13% more volatile than the S&P 500.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Leaf Group $113.45 million -$2.01 million -5.73
Leaf Group Competitors $943.06 million $113.10 million 670.60

Leaf Group’s competitors have higher revenue and earnings than Leaf Group. Leaf Group 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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Leaf Group and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Leaf Group 0 1 4 0 2.80
Leaf Group Competitors 424 1643 2761 94 2.51

Leaf Group currently has a consensus target price of $10.30, indicating a potential upside of 13.81%. As a group, “Internet Services” companies have a potential downside of 1.87%. Given Leaf Group’s stronger consensus rating and higher possible upside, analysts clearly believe Leaf Group is more favorable than its competitors.

Profitability

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

Net Margins Return on Equity Return on Assets
Leaf Group -25.98% -44.59% -34.40%
Leaf Group Competitors 1.60% 38.04% 7.62%

Summary

Leaf Group competitors beat Leaf Group on 8 of the 12 factors compared.

Leaf Group Company Profile

Leaf Group Ltd., formerly Demand Media, Inc., is diversified Internet marketplaces and media company. The Company has online media properties and marketplace platforms that enable communities of creators to reach audiences in lifestyle categories. The Company operates an online studio platform for the professional creation and distribution of content, as well as two online artist marketplaces. Its business comprises two service offerings: Content & Media and Marketplaces. The Company creates media content, including text articles, videos, photographs and designed visual formats, and publishes such content to its owned and operated online properties and to its customers’ online properties. The Company also offers its content creation and distribution platform to provide custom content and other content marketing solutions to brands, publishers and advertisers.

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