Financial Comparison: DocuSign (NASDAQ:DOCU) & Leafly (NASDAQ:LFLY)

DocuSign (NASDAQ:DOCU) and Leafly (NASDAQ:LFLY) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.

Insider & Institutional Ownership

77.6% of DocuSign shares are held by institutional investors. Comparatively, 15.6% of Leafly shares are held by institutional investors. 1.7% of DocuSign shares are held by insiders. Comparatively, 7.6% of Leafly shares are held by 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DocuSign	34.56%	16.18%	6.47%
Leafly	-16.61%	N/A	-29.22%

Valuation & Earnings

This table compares DocuSign and Leafly”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DocuSign	$2.86 billion	5.20	$73.98 million	$0.52	139.62
Leafly	$38.10 million	0.13	-$9.50 million	($3.21)	-0.64

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

Analyst Ratings

This is a summary of current ratings and recommmendations for DocuSign and Leafly, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DocuSign	2	7	2	0	2.00
Leafly	0	0	2	0	3.00

DocuSign presently has a consensus price target of $63.40, indicating a potential downside of 12.67%. Leafly has a consensus price target of $7.59, indicating a potential upside of 268.45%. Given Leafly’s stronger consensus rating and higher possible upside, analysts plainly believe Leafly is more favorable than DocuSign.

Volatility and Risk

DocuSign has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Leafly has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.

Summary

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

About DocuSign

DocuSign, Inc. provides electronic signature solution in the United States and internationally. The company provides e-signature solution that enables sending and signing of agreements on various devices; Contract Lifecycle Management (CLM), which automates workflows across the entire agreement process; Document Generation streamlines the process of generating new, custom agreements; and Gen for Salesforce, which allows sales representatives to automatically generate agreements with a few clicks from within Salesforce. It also provides Identify, a signer-identification option for checking government-issued IDs; Standards-Based Signatures, which support signatures that involve digital certificates; Monitor that uses advanced analytics to track DocuSign eSignature web, mobile, and API account; Notary which enables notaries public to conduct remote online notarization transactions; and Web Forms, a web forms that quickly draft agreements using pre-populated data from completed forms or external systems via APIs. In addition, the company offers Rooms for Real Estate that provides a way for brokers and agents to manage the entire real estate transaction digitally. Signature and CLM are FedRAMP, an authorized version of DocuSign eSignature for U.S. federal government agencies; and life sciences modules that support compliance with the electronic signature practices. The company sells its products through direct and partner-assisted sales, and digital self-service purchasing. DocuSign, Inc. was incorporated in 2003 and is headquartered in San Francisco, California.

About Leafly

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.