Limelight Networks (NASDAQ: LLNW) is one of 181 publicly-traded companies in the “IT Services & Consulting” industry, but how does it compare to its rivals? We will compare Limelight Networks to similar businesses based on the strength of its valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Institutional & Insider Ownership

70.3% of Limelight Networks shares are owned by institutional investors. Comparatively, 63.0% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 37.6% of Limelight Networks shares are owned by insiders. Comparatively, 16.5% of shares of all “IT Services & Consulting” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Limelight Networks and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Limelight Networks -5.91% -3.29% -2.26%
Limelight Networks Competitors -19.79% -254.55% -3.39%

Analyst Recommendations

This is a summary of current ratings and target prices for Limelight Networks and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Limelight Networks 0 1 3 0 2.75
Limelight Networks Competitors 721 4555 7245 165 2.54

Limelight Networks currently has a consensus target price of $5.00, suggesting a potential upside of 5.04%. As a group, “IT Services & Consulting” companies have a potential upside of 4.56%. Given Limelight Networks’ stronger consensus rating and higher probable upside, research analysts clearly believe Limelight Networks is more favorable than its rivals.

Risk & Volatility

Limelight Networks has a beta of 2.52, indicating that its stock price is 152% more volatile than the S&P 500. Comparatively, Limelight Networks’ rivals have a beta of 1.13, indicating that their average stock price is 13% more volatile than the S&P 500.

Valuation and Earnings

This table compares Limelight Networks and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Limelight Networks $168.23 million -$73.92 million -47.60
Limelight Networks Competitors $2.79 billion $289.83 million 275.28

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

Summary

Limelight Networks beats its rivals on 9 of the 12 factors compared.

About Limelight Networks

Limelight Networks, Inc. operates a distributed network and provides a suite of integrated services marketed as the Limelight Orchestrate Platform. The Company is engaged in providing content delivery and related services and solutions for global businesses to help them deliver their digital content across Internet, mobile, and social channels. Its services include content delivery services, mobile delivery services, video content management services, performance services, cloud-based storage services and cloud-based content security services. Its solutions include software and device manufacturers, media and broadcasters, and gaming. Limelight services incorporate content and application security, file management, video transformation, distributed storage functionality, and the analytics and reporting associated with them. The Company operates in three geographic areas: Americas; Europe, the Middle East and Africa (EMEA), and Asia Pacific.

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