Contrasting LogMeIn (NASDAQ:LOGM) and Its Rivals

LogMeIn (NASDAQ: LOGM) is one of 178 public companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its peers? We will compare LogMeIn to similar companies based on the strength of its dividends, earnings, analyst recommendations, risk, profitability, institutional ownership and valuation.

Analyst Ratings

This is a summary of current recommendations for LogMeIn and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LogMeIn 0 1 8 0 2.89
LogMeIn Competitors 772 4562 7413 176 2.54

LogMeIn currently has a consensus target price of $141.71, suggesting a potential upside of 17.12%. As a group, “IT Services & Consulting” companies have a potential downside of 11.27%. Given LogMeIn’s stronger consensus rating and higher possible upside, equities research analysts plainly believe LogMeIn is more favorable than its peers.

Risk and Volatility

LogMeIn has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, LogMeIn’s peers have a beta of 1.13, indicating that their average stock price is 13% more volatile than the S&P 500.

Earnings and Valuation

This table compares LogMeIn and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
LogMeIn $336.07 million $2.63 million 1,100.10
LogMeIn Competitors $2.90 billion $309.04 million 358.54

LogMeIn’s peers have higher revenue and earnings than LogMeIn. LogMeIn is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares LogMeIn and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LogMeIn 1.01% 5.50% 4.23%
LogMeIn Competitors -23.65% -286.98% -5.31%

Dividends

LogMeIn pays an annual dividend of $1.00 per share and has a dividend yield of 0.8%. LogMeIn pays out 909.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “IT Services & Consulting” companies pay a dividend yield of 1.5% and pay out 37.0% of their earnings in the form of a dividend. LogMeIn lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional & Insider Ownership

99.3% of LogMeIn shares are held by institutional investors. Comparatively, 62.6% of shares of all “IT Services & Consulting” companies are held by institutional investors. 2.5% of LogMeIn shares are held by company insiders. Comparatively, 16.1% of shares of all “IT Services & Consulting” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

LogMeIn beats its peers on 9 of the 15 factors compared.

LogMeIn Company Profile

LogMeIn, Inc. provides a portfolio of cloud-based service offerings, which helps people and businesses to connect to their workplace, colleagues and customers. The Company’s core cloud-based services are categorized into four business lines: Communications and Collaboration; Engagement and Support; Identity and Access, and Additional Service Offerings. The Company’s communication and collaboration services include GoToMeeting; GoToTraining; GoToWebinar; join.me, join.me pro and join.me enterprise; OpenVoice, and Grasshopper. The Company’s customer engagement and support services include BoldChat; GoToAssist, GoToAssist Corporate and GoToAssist Seeit; LogMeIn Rescue, Rescue Lens and LogMeIn Rescue+Mobile, and Xively. Its identity and access management services include LogMeIn Central, GoToMyPC, LogMeIn Pro and LastPass. Its additional service offerings include LogMeIn Backup, LogMeIn Hamachi and RemotelyAnywhere.

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