Critical Review: Porch Group (NASDAQ:PRCH) and Leafly (NASDAQ:LFLY)

Leafly (NASDAQ:LFLYGet Free Report) and Porch Group (NASDAQ:PRCHGet Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Profitability

This table compares Leafly and Porch Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Leafly -16.61% N/A -29.22%
Porch Group -18.26% N/A -11.22%

Earnings & Valuation

This table compares Leafly and Porch Group”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Leafly $38.10 million 0.12 -$9.50 million ($3.21) -0.56
Porch Group $470.46 million 0.27 -$133.93 million ($1.14) -1.11

Leafly has higher earnings, but lower revenue than Porch Group. Porch Group is trading at a lower price-to-earnings ratio than Leafly, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

15.6% of Leafly shares are held by institutional investors. Comparatively, 48.5% of Porch Group shares are held by institutional investors. 7.6% of Leafly shares are held by company insiders. Comparatively, 23.5% of Porch Group shares 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.

Analyst Recommendations

This is a summary of current recommendations for Leafly and Porch Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Leafly 0 0 2 0 3.00
Porch Group 0 1 5 1 3.00

Leafly currently has a consensus price target of $7.59, indicating a potential upside of 319.34%. Porch Group has a consensus price target of $4.18, indicating a potential upside of 229.02%. Given Leafly’s higher possible upside, research analysts clearly believe Leafly is more favorable than Porch Group.

Risk and Volatility

Leafly has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Porch Group has a beta of 2.04, indicating that its share price is 104% more volatile than the S&P 500.

Summary

Porch Group beats Leafly on 9 of the 13 factors compared between the two stocks.

About Leafly

(Get Free Report)

Leafly Holdings, Inc. owns and operates a platform to provide consumers with cannabis information and connects consumers to cannabis brands and licensed retailers. The company offers subscription-based marketplace listings, digital advertising solutions, and software as a service-based tools to cannabis retailers; and information, reviews, menus, and ordering and delivery options to its audience through its website and mobile applications. Leafly Holdings, Inc. was founded in 2010 and is headquartered in Seattle, Washington.

About Porch Group

(Get Free Report)

Porch Group, Inc., together with its subsidiaries, operates a vertical software and insurance platform in the United States. The company operates in two segments, Vertical Software and Insurance. The Vertical Software segment provides software and services to inspection, mortgage, and title companies on a subscription and transactional basis, as well as move and post-move services. This segment offers inspection software and services, title insurance software, mortgage software, moving services, mover and homeowner marketing, and measurement software for roofers. The Insurance segment offers consumers with insurance and warranty products to protect their homes. This segment provides property-related insurance and captive reinsurance products; and warranty products under the Porch Warranty, American Home Protect, and Residential Warranty Services brands. The company was founded in 2011 and is headquartered in Seattle, Washington.

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