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

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Leaf Group 0 1 4 0 2.80
Leaf Group Competitors 413 1615 2729 91 2.52

Leaf Group presently has a consensus target price of $10.30, suggesting a potential upside of 28.75%. As a group, “Internet Services” companies have a potential downside of 73.80%. Given Leaf Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Leaf Group is more favorable than its competitors.

Valuation & Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
Leaf Group $113.45 million -$2.01 million -5.03
Leaf Group Competitors $991.07 million $116.17 million -1,716.39

Leaf Group’s competitors have higher revenue and earnings than Leaf Group. Leaf Group is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

63.3% of Leaf Group shares are held by institutional investors. Comparatively, 65.3% of shares of all “Internet Services” companies are held by institutional investors. 47.6% of Leaf Group shares are held by insiders. Comparatively, 20.6% of shares of all “Internet Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

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 2.28% 44.29% 8.94%

Risk & Volatility

Leaf Group has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500. Comparatively, Leaf Group’s competitors have a beta of 1.43, indicating that their average share price is 43% more volatile than the S&P 500.

Summary

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

About Leaf Group

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.

Receive News & Ratings for Leaf Group Ltd. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Leaf Group Ltd. and related companies with Analyst Ratings Network's FREE daily email newsletter.