Leaf Group (NYSE: DMD) is one of 50 publicly-traded companies in the “Internet Services” industry, but how does it contrast to its peers? We will compare Leaf Group to related businesses based on the strength of its earnings, analyst recommendations, valuation, risk, profitability, institutional ownership and dividends.

Institutional and Insider Ownership

58.8% of Leaf Group shares are held by institutional investors. Comparatively, 62.3% of shares of all “Internet Services” companies are held by institutional investors. 44.0% of Leaf Group shares are held by insiders. Comparatively, 22.9% of shares of all “Internet Services” companies 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.

Analyst Ratings

This is a breakdown of current ratings for Leaf Group and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Leaf Group 0 1 1 0 2.50
Leaf Group Competitors 440 1689 2625 104 2.49

Leaf Group currently has a consensus price target of $7.75, indicating a potential upside of 22.05%. As a group, “Internet Services” companies have a potential upside of 6.54%. Given Leaf Group’s stronger consensus rating and higher probable upside, analysts clearly believe Leaf Group is more favorable than its peers.

Valuation and Earnings

This table compares Leaf Group and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Leaf Group N/A N/A -26.46
Leaf Group Competitors $950.86 million $126.85 million 54.27

Leaf Group’s peers have higher revenue and earnings than Leaf Group. Leaf Group 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.

Volatility and Risk

Leaf Group has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, Leaf Group’s peers have a beta of 1.36, meaning that their average stock price is 36% more volatile than the S&P 500.

Profitability

This table compares Leaf Group and its peers’ 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%
Leaf Group Competitors 0.37% 27.20% 6.30%

Summary

Leaf Group peers beat Leaf Group on 8 of the 11 factors compared.

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.

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