LegalZoom.com (NASDAQ:LZ) & SiteOne Landscape Supply (NYSE:SITE) Financial Comparison

SiteOne Landscape Supply (NYSE:SITE) and LegalZoom.com (NASDAQ:LZ) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.

Profitability

This table compares SiteOne Landscape Supply and LegalZoom.com’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SiteOne Landscape Supply	2.69%	7.80%	3.88%
LegalZoom.com	4.07%	20.36%	6.05%

Volatility & Risk

SiteOne Landscape Supply has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500. Comparatively, LegalZoom.com has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Insider and Institutional Ownership

82.0% of LegalZoom.com shares are owned by institutional investors. 2.6% of SiteOne Landscape Supply shares are owned by company insiders. Comparatively, 5.9% of LegalZoom.com shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares SiteOne Landscape Supply and LegalZoom.com”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SiteOne Landscape Supply	$4.54 billion	1.33	$123.60 million	$2.74	49.39
LegalZoom.com	$681.88 million	2.89	$29.96 million	$0.16	68.44

SiteOne Landscape Supply has higher revenue and earnings than LegalZoom.com. SiteOne Landscape Supply is trading at a lower price-to-earnings ratio than LegalZoom.com, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and price targets for SiteOne Landscape Supply and LegalZoom.com, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SiteOne Landscape Supply	1	4	5	0	2.40
LegalZoom.com	1	5	2	0	2.13

SiteOne Landscape Supply presently has a consensus price target of $150.50, suggesting a potential upside of 11.21%. LegalZoom.com has a consensus price target of $10.83, suggesting a potential downside of 1.07%. Given SiteOne Landscape Supply’s stronger consensus rating and higher possible upside, research analysts clearly believe SiteOne Landscape Supply is more favorable than LegalZoom.com.

About SiteOne Landscape Supply

SiteOne Landscape Supply, Inc., together with its subsidiaries, engages in the wholesale distribution of landscape supplies in the United States and Canada. The company provides irrigation products, including controllers, valves, sprinkler heads, irrigation pipes, micro irrigation, and drip products; fertilizer, grass seed, and ice melt products; control products, such as herbicides, fungicides, rodenticides, and other pesticides; landscape accessories that include mulches, soil amendments, drainage pipes, tools, and sods; nursery goods, which consist of deciduous and evergreen shrubs, ornamental, shade, evergreen trees, field grown and container-grown nursery stock, roses, perennials, annuals, bulbs, and plant species and cultivars; hardscapes, such as pavers, natural stones, blocks, and other durable materials; and outdoor lighting products that include lighting fixtures, LED lamps, wires, transformers, and accessories. It also offers consultative services consisting of assistance with irrigation project take-offs, commercial project planning, generation of sales leads, business operations, and product support services, as well as a series of technical and business management seminars; and distributes branded products of third parties. The company offers its products under the LESCO, SiteOne Green Tech, and Pro-Trade brand names. It markets its products primarily to residential and commercial landscape professionals who specializes in the design, installation, and maintenance of lawns, gardens, golf courses, and other outdoor spaces through branch network and direct distribution. SiteOne Landscape Supply, Inc. was incorporated in 2013 and is headquartered in Roswell, Georgia.

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.