LogMein (NASDAQ: LOGM) is one of 181 public companies in the “IT Services & Consulting” industry, but how does it compare to its peers? We will compare LogMein to related businesses based on the strength of its analyst recommendations, profitability, earnings, risk, dividends, valuation and institutional ownership.

Profitability

This table compares LogMein and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LogMein 1.01% 5.50% 4.23%
LogMein Competitors -20.11% -256.34% -3.57%

Valuation and Earnings

This table compares LogMein and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
LogMein $336.07 million $2.63 million 1,095.10
LogMein Competitors $2.79 billion $288.44 million 350.08

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for LogMein and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LogMein 0 0 8 0 3.00
LogMein Competitors 743 4651 7386 166 2.54

LogMein currently has a consensus price target of $141.00, suggesting a potential upside of 17.06%. As a group, “IT Services & Consulting” companies have a potential downside of 9.04%. Given LogMein’s stronger consensus rating and higher probable upside, analysts clearly believe LogMein is more favorable than its peers.

Institutional and Insider Ownership

99.3% of LogMein shares are held by institutional investors. Comparatively, 63.0% of shares of all “IT Services & Consulting” companies are held by institutional investors. 2.5% of LogMein shares are held by company insiders. Comparatively, 16.5% of shares of all “IT Services & Consulting” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

LogMein pays an annual dividend of $1.00 per share and has a dividend yield of 0.8%. LogMein pays out 909.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “IT Services & Consulting” companies pay a dividend yield of 1.5% and pay out 38.0% of their earnings in the form of a dividend. LogMein lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Volatility and Risk

LogMein has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, LogMein’s peers have a beta of 1.15, meaning that their average stock price is 15% more volatile than the S&P 500.

Summary

LogMein beats its peers on 8 of the 15 factors compared.

About LogMein

LogMeIn, Inc. provides a portfolio of cloud-based service offerings, which helps people and businesses to connect to their workplace, colleagues and customers. The Company’s core cloud-based services are categorized into four business lines: Communications and Collaboration; Engagement and Support; Identity and Access, and Additional Service Offerings. The Company’s communication and collaboration services include GoToMeeting; GoToTraining; GoToWebinar; join.me, join.me pro and join.me enterprise; OpenVoice, and Grasshopper. The Company’s customer engagement and support services include BoldChat; GoToAssist, GoToAssist Corporate and GoToAssist Seeit; LogMeIn Rescue, Rescue Lens and LogMeIn Rescue+Mobile, and Xively. Its identity and access management services include LogMeIn Central, GoToMyPC, LogMeIn Pro and LastPass. Its additional service offerings include LogMeIn Backup, LogMeIn Hamachi and RemotelyAnywhere.

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