Head to Head Review: HomeAway (AWAY) and Leaf Group (LFGR)

HomeAway (NASDAQ: AWAY) and Leaf Group (NYSE:LFGR) are both internet services – nec companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Profitability

This table compares HomeAway and Leaf Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HomeAway 7.54% 4.38% 2.46%
Leaf Group -25.98% -44.59% -34.40%

Institutional and Insider Ownership

63.4% of Leaf Group shares are owned by institutional investors. 47.6% of Leaf Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares HomeAway and Leaf Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HomeAway N/A N/A N/A $0.06 N/A
Leaf Group $113.45 million 1.55 -$2.01 million ($1.58) -5.35

HomeAway has higher earnings, but lower revenue than Leaf Group. Leaf Group is trading at a lower price-to-earnings ratio than HomeAway, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for HomeAway and Leaf Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HomeAway 0 0 0 0 N/A
Leaf Group 0 1 4 0 2.80

Leaf Group has a consensus price target of $10.30, indicating a potential upside of 21.89%.

HomeAway Company Profile

HomeAway, Inc. (HomeAway) operates an online marketplace for the vacation rental industry. The Company has vacation rentals, with sites representing over one million paid listings of vacation rental homes in approximately 190 countries. In addition to its online marketplace, the Company offers software solutions to property managers through its HomeAway Software for Professionals and Glad to Have You products. The Company’s portfolio includes the vacation rental Websites HomeAway.com, VRBO.com and VacationRentals.com in the United States, HomeAway.co.uk and OwnersDirect.co.uk in the United Kingdom, HomeAway.de in Germany, Abritel.fr and Homelidays.com in France, HomeAway.es and Toprural.es in Spain, AlugueTemporada.com.br in Brazil, HomeAway.com.au and Stayz.com.au in Australia, Bookabach.co.nz in New Zealand and Asia Pacific short-term rental site, travelmob.com. HomeAway offers Carefree Rental Guarantee, Insurance Products and Tax Filing Services to travelers.

Leaf Group Company Profile

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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