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

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 1.41% 38.79% 7.73%

Risk and Volatility

Leaf Group has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, Leaf Group’s competitors have a beta of 1.61, meaning that their average share price is 61% more volatile than the S&P 500.

Insider & Institutional Ownership

63.4% of Leaf Group shares are held by institutional investors. Comparatively, 66.1% of shares of all “Internet Services” companies are held by institutional investors. 47.6% of Leaf Group shares are held by insiders. Comparatively, 21.1% of shares of all “Internet Services” companies are held 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 Recommendations

This is a breakdown of recent recommendations for Leaf Group and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Leaf Group 0 1 4 0 2.80
Leaf Group Competitors 420 1579 2673 91 2.51

Leaf Group currently has a consensus price target of $10.30, suggesting a potential upside of 19.08%. As a group, “Internet Services” companies have a potential downside of 0.50%. Given Leaf Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Leaf Group is more favorable than its competitors.

Earnings & Valuation

This table compares Leaf Group and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Leaf Group $113.45 million -$2.01 million -5.47
Leaf Group Competitors $954.98 million $110.67 million 629.98

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

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.

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