ReachLocal (NASDAQ: RLOC) is one of 36 public companies in the “Advertising & Marketing” industry, but how does it compare to its peers? We will compare ReachLocal to related businesses based on the strength of its risk, valuation, dividends, analyst recommendations, institutional ownership, profitability and earnings.

Insider & Institutional Ownership

57.7% of shares of all “Advertising & Marketing” companies are owned by institutional investors. 21.0% of shares of all “Advertising & Marketing” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

ReachLocal has a beta of -0.18, indicating that its stock price is 118% less volatile than the S&P 500. Comparatively, ReachLocal’s peers have a beta of 1.04, indicating that their average stock price is 4% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
ReachLocal -5.20% N/A -15.27%
ReachLocal Competitors -6.57% -9.05% -2.81%

Analyst Ratings

This is a breakdown of recent recommendations for ReachLocal and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ReachLocal 0 0 0 0 N/A
ReachLocal Competitors 81 540 930 17 2.56

As a group, “Advertising & Marketing” companies have a potential upside of 17.95%. Given ReachLocal’s peers higher probable upside, analysts plainly believe ReachLocal has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares ReachLocal and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
ReachLocal N/A N/A -2.77
ReachLocal Competitors $1.13 billion $150.73 million 17.74

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

Summary

ReachLocal peers beat ReachLocal on 6 of the 8 factors compared.

About ReachLocal

ReachLocal, Inc. (ReachLocal) offers a range of online marketing and reporting solutions. The Company’s digital marketing solution consists of products and solutions in three categories: digital advertising (including ReachSearch, ReachDisplay, ReachDisplay InApp and ReachRetargeting); Web presence (including ReachSite+ReachEdge, ReachSEO, ReachCast, ReachListings and TotalLiveChat), and software (ReachEdge and Kickserv). It focuses on small to medium-sized businesses (SMBs). The Company delivers its suite of products and solutions to local businesses through a combination of its technology platform, its direct inside and outside sales force, and select third-party agencies and resellers. It also focuses on certain core verticals, which include home services, professional services, specialty services and healthcare. It also provides solutions to multi-location advertisers, such as franchises and other businesses that have multiple locations across a number of cities and states.

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