ReachLocal (RLOC) vs. Its Competitors Critical Review
ReachLocal (NASDAQ: RLOC) is one of 33 publicly-traded companies in the “Advertising & Marketing” industry, but how does it compare to its rivals? We will compare ReachLocal to similar companies based on the strength of its analyst recommendations, institutional ownership, dividends, valuation, earnings, profitability and risk.
Insider & Institutional Ownership
57.6% of shares of all “Advertising & Marketing” companies are held by institutional investors. 22.0% of shares of all “Advertising & Marketing” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares ReachLocal and its rivals top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|ReachLocal Competitors||$2.71 billion||$171.61 million||-509.36|
ReachLocal’s rivals have higher revenue and earnings than ReachLocal. ReachLocal is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
This is a summary of recent recommendations for ReachLocal and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
As a group, “Advertising & Marketing” companies have a potential upside of 21.30%. Given ReachLocal’s rivals higher probable upside, analysts plainly believe ReachLocal has less favorable growth aspects than its rivals.
This table compares ReachLocal and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
ReachLocal rivals beat ReachLocal on 6 of the 8 factors compared.
ReachLocal Company Profile
ReachLocal, Inc. (ReachLocal) offers a range of online marketing and reporting solutions. The Company’s digital marketing solution consists of products and solutions in three categories: digital advertising (including ReachSearch, ReachDisplay, ReachDisplay InApp and ReachRetargeting); Web presence (including ReachSite+ReachEdge, ReachSEO, ReachCast, ReachListings and TotalLiveChat), and software (ReachEdge and Kickserv). It focuses on small to medium-sized businesses (SMBs). The Company delivers its suite of products and solutions to local businesses through a combination of its technology platform, its direct inside and outside sales force, and select third-party agencies and resellers. It also focuses on certain core verticals, which include home services, professional services, specialty services and healthcare. It also provides solutions to multi-location advertisers, such as franchises and other businesses that have multiple locations across a number of cities and states.
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