Leaf Group (NYSE: DMD) and Trivago N.V. ADS (NASDAQ:TRVG) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Analyst Recommendations

This is a summary of recent ratings and price targets for Leaf Group and Trivago N.V. ADS, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Leaf Group 0 1 1 0 2.50
Trivago N.V. ADS 0 7 3 0 2.30

Leaf Group currently has a consensus target price of $7.75, suggesting a potential upside of 22.05%. Trivago N.V. ADS has a consensus target price of $18.90, suggesting a potential upside of 68.75%. Given Trivago N.V. ADS’s higher probable upside, analysts clearly believe Trivago N.V. ADS is more favorable than Leaf Group.

Institutional & Insider Ownership

58.8% of Leaf Group shares are held by institutional investors. Comparatively, 13.6% of Trivago N.V. ADS shares are held by institutional investors. 44.0% of Leaf Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Leaf Group and Trivago N.V. ADS’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Leaf Group N/A N/A N/A ($0.24) -26.46
Trivago N.V. ADS $1.17 billion 3.35 $31.84 million N/A N/A

Trivago N.V. ADS has higher revenue and earnings than Leaf Group.

Profitability

This table compares Leaf Group and Trivago N.V. ADS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Leaf Group -31.38% -52.73% -41.29%
Trivago N.V. ADS N/A N/A N/A

Summary

Trivago N.V. ADS beats Leaf Group on 6 of the 9 factors compared between the two stocks.

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.

About Trivago N.V. ADS

Trivago NV is a company based in the Netherlands that operates an online hotel search platform. The platform allows users to search for, compare and book hotels. It gathers information from various third parties’ platforms and provides information about the hotel, pictures, ratings, reviews and filters, such as price, location and extra options. The Company offers access to approximately 1.3 million hotels in over 190 countries via more than 50 localized websites and applications in various languages. The Company also offers marketing tools and services to hotels and hotel chains, as well as to online travel agencies and advertisers, among others. Its principal executive offices are located in Germany.

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