Analyzing NantHealth (NASDAQ:NH) & LegalZoom.com (NASDAQ:LZ)

NantHealth (NASDAQ:NH) and LegalZoom.com (NASDAQ:LZ) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.

Earnings and Valuation

This table compares NantHealth and LegalZoom.com’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NantHealth	$67.68 million	0.16	-$67.78 million	($7.65)	-0.18
LegalZoom.com	$660.73 million	3.44	$13.95 million	$0.08	150.63

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

Institutional and Insider Ownership

4.5% of NantHealth shares are held by institutional investors. Comparatively, 82.0% of LegalZoom.com shares are held by institutional investors. 61.3% of NantHealth shares are held by insiders. Comparatively, 44.6% of LegalZoom.com shares 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 NantHealth and LegalZoom.com’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NantHealth	-94.67%	N/A	-39.82%
LegalZoom.com	2.11%	15.79%	5.74%

Analyst Ratings

This is a breakdown of recent ratings for NantHealth and LegalZoom.com, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NantHealth	0	0	0	0	N/A
LegalZoom.com	1	2	4	0	2.43

LegalZoom.com has a consensus price target of $14.36, suggesting a potential upside of 19.15%. Given LegalZoom.com’s higher possible upside, analysts plainly believe LegalZoom.com is more favorable than NantHealth.

Risk & Volatility

NantHealth has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500. Comparatively, LegalZoom.com has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.

Summary

LegalZoom.com beats NantHealth on 11 of the 13 factors compared between the two stocks.

About NantHealth

NantHealth, Inc. engages in the provision of enterprise solutions that help businesses transform complex data into actionable insights. It is also involved in marketing solutions as a comprehensive integrated solution that includes clinical decision support, payer engagement solutions, data analysis, and network monitoring and management. The company was founded by Patrick Soon-Shiong on July 7, 2010 and is headquartered in Morrisville, NC.

About LegalZoom.com

LegalZoom.com, Inc., together with its subsidiaries, operates an online platform that supports the legal, compliance, and business management needs of small businesses and consumers in the United States. The company's platform offers business formation products, such as limited liability company, incorporation of C and S corporations, nonprofit formations, doing-business-as, corporate changes and filings, business licenses, legal forms, and beneficial ownership information reports; intellectual property products consisting of trademark and patent applications, and copyright registrations; and tax services, including business and personal tax preparations. It also provides consumer, estate planning, and other services comprising last will and testament, living will, living trust, power of attorney, and name change. In addition, the company offers subscriptions services, including registered agent, compliance, attorney advice, tax advice and preparation, eSignature, virtual mail and check deposit services, trademark monitoring, and estate planning bundle. The company was incorporated in 1999 and is headquartered in Glendale, California.