Critical Analysis: Clarivate (NYSE:CLVT) versus Life360 (NASDAQ:LIF)

Clarivate (NYSE:CLVT) and Life360 (NASDAQ:LIF) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and target prices for Clarivate and Life360, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clarivate	2	3	3	0	2.13
Life360	0	1	6	1	3.00

Clarivate currently has a consensus target price of $7.75, suggesting a potential upside of 19.05%. Life360 has a consensus target price of $39.75, suggesting a potential upside of 21.19%. Given Life360’s stronger consensus rating and higher possible upside, analysts plainly believe Life360 is more favorable than Clarivate.

Institutional and Insider Ownership

85.7% of Clarivate shares are held by institutional investors. 22.8% of Clarivate 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.

Profitability

This table compares Clarivate and Life360’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clarivate	-46.53%	10.01%	3.94%
Life360	-9.26%	-9.81%	-7.59%

Earnings and Valuation

This table compares Clarivate and Life360″s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clarivate	$2.60 billion	1.67	-$911.20 million	($1.66)	-3.92
Life360	$328.68 million	7.33	-$28.17 million	N/A	N/A

Life360 has lower revenue, but higher earnings than Clarivate.

Summary

Life360 beats Clarivate on 7 of the 12 factors compared between the two stocks.

About Clarivate

Clarivate Plc operates as an information services provider in the Americas, the Middle East, Africa, Europe, and the Asia Pacific. It operates through three segments: Academia & Government, Life Sciences & Healthcare, and Intellectual Property. The company offers Web of Science and InCites, that analyzes and explores the academic research landscape and manages research information; ProQuest One and Ebook Central that provides comprehensive content collections to institutions in a cost-effective manner; and Alma and Polaris, that manages academic resources and services, connect users, and support research publications. It also provides Patent and Trademark Renewals, that supports paralegal and admin tasks throughout the patent and trademark protection and maintenance process; CompuMark and Derwent, that supports critical decisions around patent and trademark protection, risk, and value creation throughout the innovation and brand lifecycle; IPFolio and Foundation IP that creates a structured environment for the protection and management of global patent and trademark assets. In addition, the company offers Cortellis Competitive Intelligence and Cortellis Drug Discovery Intelligence, that supports the development of new drugs and medical devices from discovery to clinical trials; Cortellis Regulatory Intelligence and OFF-X to monitor drug safety issues and adhere to regulatory protocols; Real World Data and Optimize that inform commercial launch strategy and set pricing for optimal reimbursement. It serves corporations, universities, law firms, government agencies, public libraries, and other professional services organizations. The company was formerly known as Clarivate Analytics Plc and changed its name to Clarivate Plc in May 2020. Clarivate Plc was founded in 1864 and is headquartered in London, the United Kingdom.

About Life360

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.