Analyzing LegalZoom.com (NASDAQ:LZ) and Kion Group (OTCMKTS:KIGRY)

LegalZoom.com (NASDAQ:LZ) and Kion Group (OTCMKTS:KIGRY) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Valuation & Earnings

This table compares LegalZoom.com and Kion Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LegalZoom.com	$681.88 million	2.09	$29.96 million	$0.12	67.08
Kion Group	$12.45 billion	0.76	$389.88 million	$0.58	31.02

Kion Group has higher revenue and earnings than LegalZoom.com. Kion Group is trading at a lower price-to-earnings ratio than LegalZoom.com, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

LegalZoom.com has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, Kion Group has a beta of 2.18, suggesting that its stock price is 118% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for LegalZoom.com and Kion Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LegalZoom.com	2	4	3	0	2.11
Kion Group	1	2	1	1	2.40

LegalZoom.com presently has a consensus target price of $11.50, suggesting a potential upside of 42.86%. Given LegalZoom.com’s higher probable upside, equities analysts clearly believe LegalZoom.com is more favorable than Kion Group.

Profitability

This table compares LegalZoom.com and Kion Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LegalZoom.com	3.05%	9.91%	3.35%
Kion Group	2.48%	4.59%	1.50%

Institutional & Insider Ownership

82.0% of LegalZoom.com shares are held by institutional investors. 5.9% of LegalZoom.com shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

LegalZoom.com beats Kion Group on 9 of the 15 factors compared between the two stocks.

About LegalZoom.com

LegalZoom.com, Inc., together with its subsidiaries, operates an online platform that supports the legal, compliance, and business management needs of small businesses and consumers in the United States. The company’s platform offers business formation products, such as limited liability company, incorporation of C and S corporations, nonprofit formations, doing-business-as, corporate changes and filings, business licenses, legal forms, and beneficial ownership information reports; intellectual property products consisting of trademark and patent applications, and copyright registrations; and tax services, including business and personal tax preparations. It also provides consumer, estate planning, and other services comprising last will and testament, living will, living trust, power of attorney, and name change. In addition, the company offers subscriptions services, including registered agent, compliance, attorney advice, tax advice and preparation, eSignature, virtual mail and check deposit services, trademark monitoring, and estate planning bundle. The company was incorporated in 1999 and is headquartered in Mountain View, California.

About Kion Group

KION GROUP AG provides industrial trucks and supply chain solutions worldwide. The company operates in Industrial Trucks & Services and Supply Chain Solutions segments. It offers forklift trucks, counterbalance trucks with electric drive and internal combustion engine, ride-on and hand-operated warehouse trucks, automated guided vehicle systems (AGVs), and towing vehicles under the Linde, STILL, Baoli, Fenwick, and OM brands. The company also manufactures and sells spare parts; leases and rents industrial trucks and related items; and offers maintenance and repair, and fleet management services, as well as provides finance solutions. In addition, it provides integrated technology and software solutions, including automated guided vehicle systems, palletizers, storage and picking equipment, automated storage and retrieval systems, sorters, and conveyors under the Dematic brand. The company was formerly known as KION Holding 1 GmbH. KION GROUP AG was founded in 2006 and is based in Frankfurt am Main, Germany.