LegalZoom.com (NASDAQ:LZ – Get Free Report) and UL Solutions (NYSE:ULS – Get Free Report) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.
Risk and Volatility
LegalZoom.com has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, UL Solutions has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and price targets for LegalZoom.com and UL Solutions, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LegalZoom.com | 3 | 5 | 0 | 0 | 1.62 |
| UL Solutions | 0 | 5 | 6 | 0 | 2.55 |
Institutional and Insider Ownership
82.0% of LegalZoom.com shares are owned by institutional investors. 7.4% of LegalZoom.com shares are owned by insiders. Comparatively, 1.2% of UL Solutions shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares LegalZoom.com and UL Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LegalZoom.com | 2.13% | 15.83% | 5.08% |
| UL Solutions | 16.02% | 28.81% | 13.25% |
Earnings and Valuation
This table compares LegalZoom.com and UL Solutions”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LegalZoom.com | $756.04 million | 1.41 | $15.43 million | $0.09 | 69.22 |
| UL Solutions | $3.05 billion | 4.30 | $325.00 million | $2.47 | 26.32 |
UL Solutions has higher revenue and earnings than LegalZoom.com. UL Solutions is trading at a lower price-to-earnings ratio than LegalZoom.com, indicating that it is currently the more affordable of the two stocks.
Summary
UL Solutions beats LegalZoom.com on 10 of the 14 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 UL Solutions
UL Solutions Inc. provides safety science services worldwide. It operates through three segments: Industrial, Consumer, and Software and Advisory. The Industrial segment provides testing, inspection, and certification services across various end markets, including energy, industrial automation, engineered materials, and built environment, as well as stakeholders, such as manufacturers, building owners, end users, and regulators. The Consumer segment offers safety certification testing, ongoing certification, global market access, testing for connectivity, performance and quality, and critical systems advisory and training services, as well as product market acceptance and risk mitigation services for customers in the consumer products end markets comprising consumer electronics, medical devices, information technologies, appliances, HVAC, lighting, and retail, as well as consumer applications, such as new mobility, smart products, and 5G. The Software and Advisory segment provide software and technical advisory services that enable customers to manage regulatory requirements, deliver supply chain transparency, and operationalize sustainability for regulated industries, including life sciences, supply chain regulations, transparency needs, and new ESG and sustainability requirements. It offers ULTRUS software brand to help customers improve speed to market, sustainability and safety. UL Solutions Inc. was formerly known as UL Inc. and changed its name to UL Solutions Inc. in June 2022. The company was founded in 1894 and is headquartered in Northbrook, Illinois with additional offices in North America, Asia Pacific, Africa, Europe, Latin America, and Middle East. UL Solutions Inc. operates as a subsidiary of ULSE Inc.
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