Limelight Networks (NASDAQ: LLNW) is one of 188 publicly-traded companies in the “IT Services & Consulting” industry, but how does it contrast to its peers? We will compare Limelight Networks to related companies based on the strength of its valuation, institutional ownership, earnings, profitability, dividends, analyst recommendations and risk.

Analyst Recommendations

This is a summary of current recommendations for Limelight Networks and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Limelight Networks 0 1 3 0 2.75
Limelight Networks Competitors 748 4691 7454 168 2.54

Limelight Networks currently has a consensus price target of $5.00, indicating a potential upside of 6.84%. As a group, “IT Services & Consulting” companies have a potential downside of 7.43%. Given Limelight Networks’ stronger consensus rating and higher probable upside, equities analysts plainly believe Limelight Networks is more favorable than its peers.

Profitability

This table compares Limelight Networks and its peers’ 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 -20.29% -269.31% -4.62%

Insider and 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 endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Limelight Networks $168.23 million -$73.92 million -46.80
Limelight Networks Competitors $2.79 billion $290.02 million 321.86

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

Volatility and Risk

Limelight Networks has a beta of 2.52, suggesting that its share price is 152% more volatile than the S&P 500. Comparatively, Limelight Networks’ peers have a beta of 1.13, suggesting that their average share price is 13% more volatile than the S&P 500.

Summary

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

About Limelight Networks

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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