Limelight Networks (NASDAQ: LLNW) is one of 178 publicly-traded companies in the “IT Services & Consulting” industry, but how does it compare to its competitors? We will compare Limelight Networks to similar companies based on the strength of its analyst recommendations, valuation, profitability, earnings, institutional ownership, risk and dividends.

Analyst Recommendations

This is a summary of recent recommendations for Limelight Networks and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Limelight Networks 0 1 3 0 2.75
Limelight Networks Competitors 743 4646 7343 166 2.54

Limelight Networks currently has a consensus price target of $5.00, indicating a potential upside of 7.53%. As a group, “IT Services & Consulting” companies have a potential downside of 7.37%. Given Limelight Networks’ stronger consensus rating and higher possible upside, equities analysts clearly believe Limelight Networks is more favorable than its competitors.

Profitability

This table compares Limelight Networks and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Limelight Networks -5.91% -3.29% -2.26%
Limelight Networks Competitors -21.47% -283.02% -4.96%

Risk and Volatility

Limelight Networks has a beta of 2.52, meaning that its share price is 152% more volatile than the S&P 500. Comparatively, Limelight Networks’ competitors have a beta of 1.14, meaning that their average share price is 14% more volatile than the S&P 500.

Valuation & Earnings

This table compares Limelight Networks and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Limelight Networks $168.23 million -$73.92 million -46.50
Limelight Networks Competitors $2.79 billion $290.02 million 349.24

Limelight Networks’ competitors have higher revenue and earnings than Limelight Networks. Limelight Networks 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.

Insider & Institutional Ownership

70.0% of Limelight Networks shares are held by institutional investors. Comparatively, 61.5% of shares of all “IT Services & Consulting” companies are held by institutional investors. 37.6% of Limelight Networks shares are held by insiders. Comparatively, 17.0% of shares of all “IT Services & Consulting” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Limelight Networks beats its competitors on 9 of the 12 factors compared.

Limelight Networks Company Profile

Limelight Networks, Inc. operates a distributed network and provides a suite of integrated services marketed as the Limelight Orchestrate Platform. The Company is engaged in providing content delivery and related services and solutions for global businesses to help them deliver their digital content across Internet, mobile, and social channels. Its services include content delivery services, mobile delivery services, video content management services, performance services, cloud-based storage services and cloud-based content security services. Its solutions include software and device manufacturers, media and broadcasters, and gaming. Limelight services incorporate content and application security, file management, video transformation, distributed storage functionality, and the analytics and reporting associated with them. The Company operates in three geographic areas: Americas; Europe, the Middle East and Africa (EMEA), and Asia Pacific.

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