Contrasting Leaf Group (LFGR) and The Competition

Leaf Group (NYSE: LFGR) is one of 46 publicly-traded companies in the “Internet Services” industry, but how does it contrast to its competitors? We will compare Leaf Group to related businesses based on the strength of its risk, dividends, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Volatility & Risk

Leaf Group has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Leaf Group’s competitors have a beta of 1.42, suggesting that their average share price is 42% more volatile than the S&P 500.

Earnings and Valuation

This table compares Leaf Group and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Leaf Group $113.45 million -$2.01 million -5.16
Leaf Group Competitors $954.98 million $110.67 million 657.66

Leaf Group’s competitors have higher revenue and earnings than Leaf Group. Leaf Group 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 and Institutional Ownership

63.4% of Leaf Group shares are held by institutional investors. Comparatively, 73.7% of shares of all “Internet Services” companies are held by institutional investors. 47.6% of Leaf Group shares are held by insiders. Comparatively, 20.9% of shares of all “Internet Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Leaf Group and its competitors’ 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%
Leaf Group Competitors 1.09% 38.77% 7.61%

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Leaf Group 0 1 4 0 2.80
Leaf Group Competitors 419 1637 2748 93 2.51

Leaf Group presently has a consensus price target of $10.30, suggesting a potential upside of 26.38%. As a group, “Internet Services” companies have a potential upside of 1.61%. Given Leaf Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe Leaf Group is more favorable than its competitors.

Summary

Leaf Group competitors beat Leaf Group on 8 of the 12 factors compared.

About Leaf Group

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.

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