LegalZoom.com (NASDAQ:LZ) versus Intertek Group (OTCMKTS:IKTSF) Financial Analysis

LegalZoom.com (NASDAQ:LZ) and Intertek Group (OTCMKTS:IKTSF) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for LegalZoom.com and Intertek Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LegalZoom.com	2	6	1	0	1.89
Intertek Group	0	0	0	0	N/A

LegalZoom.com presently has a consensus target price of $9.79, indicating a potential upside of 40.20%. Given LegalZoom.com’s higher probable upside, equities research analysts plainly believe LegalZoom.com is more favorable than Intertek Group.

Valuation & Earnings

This table compares LegalZoom.com and Intertek Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LegalZoom.com	$677.51 million	1.94	$13.95 million	$0.11	63.45
Intertek Group	N/A	N/A	N/A	$1.21	57.41

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

Profitability

This table compares LegalZoom.com and Intertek Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LegalZoom.com	3.10%	22.36%	7.19%
Intertek Group	N/A	N/A	N/A

Insider and Institutional Ownership

82.0% of LegalZoom.com shares are held by institutional investors. Comparatively, 42.7% of Intertek Group shares are held by institutional investors. 10.5% of LegalZoom.com shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

LegalZoom.com pays an annual dividend of $1.44 per share and has a dividend yield of 20.6%. Intertek Group pays an annual dividend of $0.46 per share and has a dividend yield of 0.7%. LegalZoom.com pays out 1,309.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Intertek Group pays out 38.1% of its earnings in the form of a dividend.

Summary

LegalZoom.com beats Intertek Group on 10 of the 12 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 Intertek Group

Intertek Group plc engages in the provision of quality assurance solutions to various industries in the United Kingdom, the United States, China, Australia, and internationally. The company operates in five segments: Consumer Products, Corporate Assurance, Health and Safety, Industry and Infrastructure, and World of Energy. It offers quality assurance, testing, inspection, and certification services (ATIC), including laboratory safety, quality and performance testing, accredited third-party management systems auditing and certification, technical inspection, second-party supplier auditing and supply chain solutions, sustainability data verification, process performance analysis and training, food safety testing, hygiene and safety audits, advisory and consulting, and validation services, as well as hardware, software, and cyber security solutions. The company also provides asset performance management, analytical testing, non-destructive and materials testing, engineering, cargo and inventory inspection, analytical assessment, calibration, supply-chain traceability, and related research and technical services, as well as support services in product development, regulatory authorization, chemical testing, and production. It serves a range of industries, including textiles, footwear, toys, hardlines, home appliances, consumer electronics, information and communication technology, automotive, aerospace, lighting, building products, industrial and renewable energy products, oil and gas, petrochemical, minerals, exploration, ore and mining, building and construction, solar energy, energy storage, green hydrogen, petroleum and biofuels, agricultural supply chain, food, transportation, chemicals and pharma, and healthcare, as well as governments and regulatory bodies. The company was founded in 1885 and is based in London, the United Kingdom.