Leaf Group (NYSE: LFGR) and Yext (NYSE:YEXT) are both small-cap technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of current ratings for Leaf Group and Yext, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Leaf Group 0 1 4 0 2.80
Yext 0 2 3 0 2.60

Leaf Group currently has a consensus price target of $10.30, suggesting a potential upside of 13.19%. Yext has a consensus price target of $16.20, suggesting a potential upside of 39.78%. Given Yext’s higher possible upside, analysts clearly believe Yext is more favorable than Leaf Group.

Valuation and Earnings

This table compares Leaf Group and Yext’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Leaf Group $113.45 million 1.67 -$2.01 million ($1.59) -5.72
Yext $124.26 million 8.51 -$43.15 million N/A N/A

Leaf Group has higher earnings, but lower revenue than Yext.

Institutional & Insider Ownership

63.4% of Leaf Group shares are held by institutional investors. Comparatively, 28.6% of Yext shares are held by institutional investors. 47.6% of Leaf Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Leaf Group and Yext’s 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%
Yext -40.63% -157.17% -38.67%

Summary

Leaf Group beats Yext on 8 of the 11 factors compared between the two stocks.

Leaf Group Company Profile

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.

Yext Company Profile

Yext Inc. is a knowledge engine provider. Yext puts business on the map. The Yext Knowledge Engine enables companies to manage their digital knowledge in the cloud and sync it to over 100 services in the PowerListings Network, including Apple Maps, Bing, Cortana, Facebook, Google, Google Maps, Instagram, Siri and Yelp. Yext Listings, Pages and Reviews help businesses around the globe and facilitate face-to-face digital interactions. Yext Knowledge Engine enables businesses to control and manage their digital knowledge and makes it available through the PowerListings Network of over 100 third-party maps, apps, search engines, intelligent GPS systems, digital assistants, vertical directories and social networks in a complete, up to date and accurate manner.

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