Yelp (NYSE: YELP) and Live Ventures (NASDAQ:LIVE) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.

Risk & Volatility

Yelp has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500. Comparatively, Live Ventures has a beta of -3.44, meaning that its share price is 444% less volatile than the S&P 500.

Earnings and Valuation

This table compares Yelp and Live Ventures’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Yelp $787.22 million 4.53 $43.09 million $0.15 290.67
Live Ventures $131.12 million 0.20 $18.31 million $2.17 6.12

Yelp has higher revenue and earnings than Live Ventures. Live Ventures is trading at a lower price-to-earnings ratio than Yelp, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Yelp and Live Ventures, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yelp 0 18 17 0 2.49
Live Ventures 0 0 0 0 N/A

Yelp presently has a consensus price target of $41.04, suggesting a potential downside of 5.87%. Given Yelp’s higher possible upside, equities research analysts plainly believe Yelp is more favorable than Live Ventures.

Institutional & Insider Ownership

91.6% of Yelp shares are held by institutional investors. Comparatively, 5.6% of Live Ventures shares are held by institutional investors. 10.1% of Yelp shares are held by insiders. Comparatively, 64.9% of Live Ventures shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Yelp and Live Ventures’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Yelp 1.67% 1.60% 1.45%
Live Ventures 6.46% 29.02% 8.04%

Summary

Yelp beats Live Ventures on 8 of the 13 factors compared between the two stocks.

About Yelp

Yelp Inc. (Yelp) connects people with local businesses by bringing ‘word of mouth’ online and providing a platform for businesses and consumers to engage and transact. The Company offers local business review sites. Yelp provides a platform for consumers to share their everyday local business experiences with other consumers by posting reviews, tips, photos and videos, and to engage directly with businesses, through reviews, its Request-A-Quote and Message the Business features, and by completing transactions on the Yelp Platform. Yelp also provides businesses of all sizes with a range of free and paid services that help them engage with consumers. The Yelp Platform allows consumers to transact with local businesses directly on Yelp through Yelp Eat24, the food ordering and delivery business; Yelp Reservations, its online reservations product, and integrations with partners ranging from Shoptiques.com (boutique shopping) to GolfNow (tee time booking) to BloomNation (flower ordering).

About Live Ventures

Live Ventures Incorporated is a holding company for diversified businesses. The Company’s segments include Manufacturing Segment, Marketplace Platform Segment and Services Segment. The Manufacturing Segment consists of Marquis Industries, Inc. The Marketplace Platform segment consists of livedeal.com and Modern Everyday, Inc. The Services Segment consists of the local exchange carrier billings business and velocity local. It operates LiveDeal.com, a real-time deal engine that connects restaurants across the United States and consumers through an online mobile platform. It is focused on the residential, commercial and hospitality end-markets. As of September 30, 2016, the Company operated its business through 13 divisions, each specializing in a distinct area of the business, such as Best Buy flooring Source, Marquis Carpet, Best Buy Hard surface, A-O Industries, Quantum Textiles and B and H Tufters.

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