Critical Comparison: Paranovus Entertainment Technology (NASDAQ:PAVS) & LegalZoom.com (NASDAQ:LZ)

Paranovus Entertainment Technology (NASDAQ:PAVS) and LegalZoom.com (NASDAQ:LZ) are both small-cap multi-sector conglomerates companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

0.2% of Paranovus Entertainment Technology shares are owned by institutional investors. Comparatively, 82.0% of LegalZoom.com shares are owned by institutional investors. 15.6% of Paranovus Entertainment Technology shares are owned by insiders. Comparatively, 10.5% of LegalZoom.com shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Paranovus Entertainment Technology and LegalZoom.com”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paranovus Entertainment Technology	$6.55 million	1.55	-$10.13 million	N/A	N/A
LegalZoom.com	$660.73 million	2.41	$13.95 million	$0.13	71.01

LegalZoom.com has higher revenue and earnings than Paranovus Entertainment Technology.

Volatility & Risk

Paranovus Entertainment Technology has a beta of -0.11, indicating that its stock price is 111% less volatile than the S&P 500. Comparatively, LegalZoom.com has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Profitability

This table compares Paranovus Entertainment Technology and LegalZoom.com’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paranovus Entertainment Technology	N/A	N/A	N/A
LegalZoom.com	3.61%	32.88%	9.31%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Paranovus Entertainment Technology and LegalZoom.com, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paranovus Entertainment Technology	0	0	0	0	0.00
LegalZoom.com	2	6	2	0	2.00

LegalZoom.com has a consensus price target of $9.06, suggesting a potential downside of 1.81%. Given LegalZoom.com’s stronger consensus rating and higher probable upside, analysts plainly believe LegalZoom.com is more favorable than Paranovus Entertainment Technology.

Summary

LegalZoom.com beats Paranovus Entertainment Technology on 11 of the 12 factors compared between the two stocks.

About Paranovus Entertainment Technology

Paranovus Entertainment Technology Ltd. engages in the research, development, manufacture, and sale of nutraceutical and dietary supplement products in the People's Republic of China and internationally. The company's product category includes lucidum spore powders, cordyceps mycelia, Ejiao products, American ginseng products, other traditional Chinese herbal and animal extracts, vitamins, minerals, and amino acids. It also offers product marketing and e-commerce agency operation services under the Happy Buy platform to small and middle size businesses; and e-commerce solutions, internet information, and advertising services to the online stores or manufactures. In addition, the company provides secure transaction environment, automobile procurement, and financial services for automobile manufacturers under the Taochejun automobile sales platform. It sells its products through distributors, large-scale chain drugstores, malls, and supermarkets under the Happiness brand. The company was formerly known as Happiness Development Group Limited and changed its name to Paranovus Entertainment Technology Ltd. in March 2023. The company was founded in 2004 and is headquartered in Nanping, the People's Republic of China.

About LegalZoom.com

LegalZoom.com, Inc., together with its subsidiaries, operates an online platform that supports the legal, compliance, and business management needs of small businesses and consumers in the United States. The company’s platform offers business formation products, such as limited liability company, incorporation of C and S corporations, nonprofit formations, doing-business-as, corporate changes and filings, business licenses, legal forms, and beneficial ownership information reports; intellectual property products consisting of trademark and patent applications, and copyright registrations; and tax services, including business and personal tax preparations. It also provides consumer, estate planning, and other services comprising last will and testament, living will, living trust, power of attorney, and name change. In addition, the company offers subscriptions services, including registered agent, compliance, attorney advice, tax advice and preparation, eSignature, virtual mail and check deposit services, trademark monitoring, and estate planning bundle. The company was incorporated in 1999 and is headquartered in Mountain View, California.