Financial Survey: LogMein (LOGM) versus ModusLink Global Solutions (MLNK)
LogMein (NASDAQ: LOGM) and ModusLink Global Solutions (NASDAQ:MLNK) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.
Institutional & Insider Ownership
99.3% of LogMein shares are owned by institutional investors. Comparatively, 56.2% of ModusLink Global Solutions shares are owned by institutional investors. 2.5% of LogMein shares are owned by company insiders. Comparatively, 1.3% of ModusLink Global Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares LogMein and ModusLink Global Solutions’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ModusLink Global Solutions||-5.39%||-34.16%||-7.72%|
Valuation & Earnings
This table compares LogMein and ModusLink Global Solutions’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|LogMein||$336.07 million||18.29||$2.63 million||$0.11||1,061.46|
|ModusLink Global Solutions||$436.62 million||0.29||-$25.82 million||($0.40)||-5.67|
LogMein has higher earnings, but lower revenue than ModusLink Global Solutions. ModusLink Global Solutions is trading at a lower price-to-earnings ratio than LogMein, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for LogMein and ModusLink Global Solutions, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ModusLink Global Solutions||0||1||0||0||2.00|
LogMein currently has a consensus price target of $141.00, suggesting a potential upside of 20.77%. ModusLink Global Solutions has a consensus price target of $8.00, suggesting a potential upside of 252.42%. Given ModusLink Global Solutions’ higher possible upside, analysts clearly believe ModusLink Global Solutions is more favorable than LogMein.
LogMein pays an annual dividend of $1.00 per share and has a dividend yield of 0.9%. ModusLink Global Solutions does not pay a dividend. 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.
Volatility and Risk
LogMein has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, ModusLink Global Solutions has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.
LogMein beats ModusLink Global Solutions on 12 of the 15 factors compared between the two stocks.
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.
About ModusLink Global Solutions
ModusLink Global Solutions, Inc. is a provider of supply chain and logistics services through its subsidiaries, ModusLink Corporation and ModusLink PTS, Inc. The Company provides services to companies in the consumer electronics, communications, computing, software, storage and retail industries. The Company operates through four segments: Americas, Asia, Europe and e-business. As of July 31, 2016, the Company operated in over 20 sites across North America, Europe and the Asia Pacific region. The Company’s Supply Chain Business operation’s solutions include material planning and factory supply; value-added warehousing and distribution; aftermarket services, including product returns management and product repair and recovery, and e-business, including e-commerce, contact center, entitlement management and financial management.
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