Recruit (OTCMKTS:RCRUY – Get Free Report) and LegalZoom.com (NASDAQ:LZ – Get Free Report) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.
Institutional and Insider Ownership
82.0% of LegalZoom.com shares are held by institutional investors. 7.4% of LegalZoom.com shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Recruit and LegalZoom.com”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Recruit | $24.56 billion | 6.59 | $3.28 billion | $0.52 | 42.25 |
| LegalZoom.com | $756.04 million | 1.37 | $15.43 million | $0.09 | 67.33 |
Recruit has higher revenue and earnings than LegalZoom.com. Recruit is trading at a lower price-to-earnings ratio than LegalZoom.com, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Recruit and LegalZoom.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Recruit | 14.94% | 35.54% | 20.88% |
| LegalZoom.com | 2.13% | 15.83% | 5.08% |
Analyst Ratings
This is a breakdown of current recommendations for Recruit and LegalZoom.com, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Recruit | 0 | 1 | 0 | 0 | 2.00 |
| LegalZoom.com | 3 | 5 | 0 | 0 | 1.62 |
LegalZoom.com has a consensus target price of $7.30, indicating a potential upside of 20.46%. Given LegalZoom.com’s higher probable upside, analysts plainly believe LegalZoom.com is more favorable than Recruit.
Volatility & Risk
Recruit has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500. Comparatively, LegalZoom.com has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.
Summary
Recruit beats LegalZoom.com on 9 of the 13 factors compared between the two stocks.
About Recruit
Recruit Holdings Co., Ltd. provides HR technology and business solutions that transforms the world of work. It operates through three segments: HR Technology, Matching & Solutions, and Staffing. The HR Technology segment provides various technological solutions that help job seekers and employers in navigating hiring and recruitment. The Matching & Solutions segment offers HR solutions that support business clients’ recruiting and hiring activities and individual users’ job search activities through its job advertising services and placement services. This segment also provides marketing solutions that provide matching platforms for businesses in various industries, including housing and real estate, beauty, bridal, travel, dining, and others, as well as SaaS solutions, which are business and management support tools for small and medium-sized companies. The Staffing segment provides temporary staffing services in Japan, Europe, the United States, and Australia. Recruit Holdings Co., Ltd. operates in more than 60 countries. The company was formerly known as Recruit Co., Ltd. and changed its name to Recruit Holdings Co., Ltd. in October 2012. Recruit Holdings Co., Ltd. was founded in 1960 and is headquartered in Tokyo, Japan.
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.
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