Locafy (NASDAQ:LCFY) versus Ziff Davis (NASDAQ:ZD) Head-To-Head Analysis

Ziff Davis (NASDAQ:ZD) and Locafy (NASDAQ:LCFY) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.

Profitability

This table compares Ziff Davis and Locafy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ziff Davis	7.62%	13.73%	7.03%
Locafy	N/A	N/A	N/A

Institutional & Insider Ownership

99.8% of Ziff Davis shares are held by institutional investors. Comparatively, 0.0% of Locafy shares are held by institutional investors. 2.2% of Ziff Davis shares are held by company insiders. Comparatively, 28.7% of Locafy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Ziff Davis has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Locafy has a beta of 1.95, meaning that its stock price is 95% more volatile than the S&P 500.

Valuation & Earnings

This table compares Ziff Davis and Locafy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ziff Davis	$1.40 billion	0.88	$63.05 million	$2.52	12.46
Locafy	$2.07 million	3.93	-$2.79 million	($1.04)	-4.35

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Ziff Davis and Locafy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ziff Davis	1	5	1	0	2.00
Locafy	1	0	0	0	1.00

Ziff Davis currently has a consensus price target of $37.50, indicating a potential upside of 19.46%. Given Ziff Davis’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Ziff Davis is more favorable than Locafy.

Summary

Ziff Davis beats Locafy on 11 of the 14 factors compared between the two stocks.

About Ziff Davis

Ziff Davis, Inc., together with its subsidiaries, operates as a digital media and internet company in the United States and internationally. The company offers PCMag, an online resource for laboratory-based product reviews, technology news, buying guides, and research papers; Mashable for publishing technology and culture content; Spiceworks Ziff Davis provides digital content of IT products and services; retailMeNot, a savings destination platform; Offers.com, a coupon and deals website; and event-based properties, including BlackFriday.com, TheBlackFriday.com, BestBlackFriday.com, and DealsofAmerica.com. It also offers gaming and entertainment content under the IGN Entertainment and Humble Bundle brands; and information on internet connectivity under the Ookla, Ekahau, Downdetector, and RootMetrics brands. The company also offers digital content and information services for health and wellness consumers under the Everyday Health, DailyOM, Lose It!, Diabetes Daily, Castle Connolly, and Migraine Again brands; pregnancy and parenting content under the BabyCenter, Emma's Diary, and What to Expect brands; and Medpage Today that delivers medical news. In addition, the company offers PRIME Education, a medical education program for healthcare professionals; and Health eCareers, a digital portal for healthcare professionals. Further, it provides endpoint and email security, security awareness training, secure backup and file sharing, and virtual private network solutions under the IPVanish, VIPRE, Livedrive, Inspired eLearning, and SugarSync brands; and email marketing and delivery solutions, search engine optimization tools, and voice and text communication services under the Campaigner, iContact, SMTP, Kickbox, MOZ Pro, MOZ Local, Stat Analytics, eVoice, and Line2 brands. The company was formerly known as j2 Global, Inc. and changed its name to Ziff Davis, Inc. in October 2021. Ziff Davis, Inc. was incorporated in 2014 and is headquartered in New York, New York.

About Locafy

Locafy Limited operates as a software-as-a-service company (SaaS) that specializes in search engine marketing in Australia, New Zealand, Europe, North America, and internationally. The company operates in three segments: Publishing, Direct Sales, and Reseller Sales. It focuses on commercializing its SaaS online publishing technology platform that comprises an integrated suite of solutions. The company also owns and operates several online directories and offers search engine optimization solutions, which include creation of proximity pages and proximity networks, local pages, and map pack booster. In addition, its platform publishes content to various devices that uses a web browser to display web content, as well as programmatically optimizes the published content for local search. The company offers its solutions directly to customers, as well as through digital agencies and search engine optimization freelancers. The company was formerly known as Moboom Limited and changed its name to Locafy Limited in January 2021. Locafy Limited was incorporated in 2009 and is based in Subiaco, Australia.