Critical Comparison: Life360 (LIF) versus The Competition

Life360 (NASDAQ:LIF) is one of 953 publicly-traded companies in the “Software” industry, but how does it compare to its rivals? We will compare Life360 to related businesses based on the strength of its analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.

Insider and Institutional Ownership

20.0% of Life360 shares are held by institutional investors. Comparatively, 41.9% of shares of all “Software” companies are held by institutional investors. 6.8% of Life360 shares are held by company insiders. Comparatively, 19.9% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Life360 and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Life360	25.73%	5.66%	3.17%
Life360 Competitors	-612.40%	21.13%	-8.86%

Earnings & Valuation

This table compares Life360 and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Life360	$489.48 million	$150.83 million	26.33
Life360 Competitors	$1.80 billion	$385.91 million	109.21

Life360’s rivals have higher revenue and earnings than Life360. Life360 is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Life360 and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Life360	0	4	5	1	2.70
Life360 Competitors	5750	21540	44910	1497	2.57

Life360 currently has a consensus price target of $59.93, suggesting a potential upside of 33.13%. As a group, “Software” companies have a potential upside of 29.10%. Given Life360’s stronger consensus rating and higher possible upside, equities analysts plainly believe Life360 is more favorable than its rivals.

Volatility and Risk

Life360 has a beta of 2.17, meaning that its share price is 117% more volatile than the S&P 500. Comparatively, Life360’s rivals have a beta of 1.34, meaning that their average share price is 34% more volatile than the S&P 500.

Summary

Life360 rivals beat Life360 on 7 of the 13 factors compared.

Life360 Company Profile

Life360 Inc. is a family connection and safety company. Its business category includes mobile app and Tile tracking devices with a range of services, including location sharing, safe driver reports and crash detection with emergency dispatch. Life360 Inc. is based in SAN FRANCISCO.