LogMeIn (NASDAQ:LOGM) and LivePerson (NASDAQ:LPSN) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.

Valuation & Earnings

This table compares LogMeIn and LivePerson’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LogMeIn $1.20 billion 3.41 $74.37 million $4.55 18.03
LivePerson $249.84 million 7.29 -$25.03 million ($0.23) -122.26

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

Risk & Volatility

LogMeIn has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, LivePerson has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
LogMeIn 6.17% 7.69% 5.91%
LivePerson -10.02% -5.56% -3.32%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for LogMeIn and LivePerson, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LogMeIn 1 7 4 0 2.25
LivePerson 0 0 12 0 3.00

LogMeIn presently has a consensus target price of $100.80, indicating a potential upside of 22.87%. LivePerson has a consensus target price of $30.92, indicating a potential upside of 9.95%. Given LogMeIn’s higher probable upside, analysts plainly believe LogMeIn is more favorable than LivePerson.

Dividends

LogMeIn pays an annual dividend of $1.30 per share and has a dividend yield of 1.6%. LivePerson does not pay a dividend. LogMeIn pays out 28.6% of its earnings in the form of a dividend.

Institutional & Insider Ownership

98.0% of LogMeIn shares are held by institutional investors. Comparatively, 80.5% of LivePerson shares are held by institutional investors. 2.4% of LogMeIn shares are held by company insiders. Comparatively, 11.5% of LivePerson shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

LogMeIn beats LivePerson on 9 of the 15 factors compared between the two stocks.

LogMeIn Company Profile

LogMeIn, Inc. provides a portfolio of cloud-based communication and collaboration, identity and access, and customer engagement and support solutions. It enables people to connect with each other worldwide to drive meaningful interactions, deepen relationships, and create better outcomes for individuals and businesses. The company offers GoToConference, a video and audio conferencing solution; GoToMeeting, a product for online meetings, sales demonstrations, and collaborative gatherings; GoToTraining, an online training product for interactive training sessions; GoToWebinar, a do-it-yourself Webinar product for organizations; Grasshopper telephony solution; Jive, a cloud-based phone service; join.me, join.me pro, and join.me business, which are online meeting and screen sharing services; and OpenVoice, a reservation-less audio conferencing service. It also provides Bold360 and BoldChat, an omni-channel engagement platform and live chat service respectively; Bold360 ai, an automated customer service; RescueAssist, GoToAssist Corporate, and GoToAssist Seeit, which are easy-to-use cloud-based remote support solutions; LogMeIn Rescue, a remote support and customer care service; and LogMeIn Rescue+Mobile and Rescue Lens that are Web-based remote support services. In addition, the company offers LogMeIn Central, a Web-based management console; GoToMyPC that enables mobile workstyles; LogMeIn Pro, a remote access service; and LastPass, a password management and single sign on solution. It serves enterprise customers, small and medium businesses, IT service providers, mobile carriers, customer service centers, OEMs, and consumers. The company was formerly known as 3am Labs, Inc. and changed its name to LogMeIn, Inc. in March 2006. LogMeIn, Inc. was founded in 2003 and is headquartered in Boston, Massachusetts with additional locations in North America, South America, Europe, Asia, and Australia.

LivePerson Company Profile

LivePerson, Inc. provides conversational commerce solutions. The company operates in two segments, Business and Consumer. The Business segment enables brands to leverage LiveEngage's intelligence engine to connect with consumers through an integrated suite of mobile and online business messaging technologies. The Consumer segment facilitates online transactions between independent service providers and individual consumers seeking information and knowledge through mobile and online messaging. The company offers LiveEngage, an enterprise-class and cloud-based platform, which enables businesses and consumers to connect through conversational interfaces; and Maven, a robust artificial intelligence engine for conversational commerce. It also provides professional services and value-added business consulting services. The company sells its products through direct and indirect sales channels to Fortune 500 companies, Internet businesses, online merchants, small businesses, automotive dealers, universities, libraries, government agencies, and not-for-profit organizations. It operates in the United States, Canada, Latin America, South America, Europe, the Middle East, Africa, and the Asia-Pacific regions. The company has strategic partnership with DMI to support clients in navigating the burgeoning conversational commerce category. LivePerson, Inc. was founded in 1995 and is headquartered in New York, New York.

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