Actua (NASDAQ: ACTA) and LogMeIn (NASDAQ:LOGM) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, valuation and profitability.

Valuation & Earnings

This table compares Actua and LogMeIn’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Actua $109.30 million 4.73 $70.08 million ($0.31) -50.97
LogMeIn $336.07 million 18.99 $2.63 million $0.11 1,102.27

Actua has higher earnings, but lower revenue than LogMeIn. Actua is trading at a lower price-to-earnings ratio than LogMeIn, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

72.5% of Actua shares are owned by institutional investors. Comparatively, 99.3% of LogMeIn shares are owned by institutional investors. 10.2% of Actua shares are owned by insiders. Comparatively, 2.5% of LogMeIn shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Actua and LogMeIn, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Actua 0 1 0 0 2.00
LogMeIn 0 1 8 0 2.89

Actua currently has a consensus price target of $17.00, indicating a potential upside of 7.59%. LogMeIn has a consensus price target of $141.71, indicating a potential upside of 16.88%. Given LogMeIn’s stronger consensus rating and higher possible upside, analysts plainly believe LogMeIn is more favorable than Actua.

Dividends

LogMeIn pays an annual dividend of $1.00 per share and has a dividend yield of 0.8%. Actua does not pay a dividend. LogMeIn pays out 909.1% 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

Actua has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, LogMeIn has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500.

Profitability

This table compares Actua and LogMeIn’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Actua 67.78% -5.80% -4.62%
LogMeIn 1.01% 5.50% 4.23%

Summary

LogMeIn beats Actua on 11 of the 16 factors compared between the two stocks.

Actua Company Profile

Actua Corporation, formerly ICG Group, Inc., is a multi-vertical cloud technology company. The Company operates through two segments, which include the vertical cloud segment and the vertical cloud (venture) segment. The Company’s vertical cloud-based businesses include Bolt Solutions Inc. (Bolt), Folio Dynamics Holdings Inc. (FolioDynamix), GovDelivery Holdings, Inc. (GovDelivery) and VelocityEHS Holdings, Inc. (VelocityEHS), which operate in the commercial and personal property and casualty insurance, wealth management, government communications and environmental, health and safety (EH&S) markets, respectively. The vertical cloud (venture) businesses include InstaMed Holdings, Inc. (InstaMed) and Parchment Inc. (Parchment), which operate a cloud-based healthcare payments network and an education credentials technology, respectively.

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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