ANGI Homeservices (NASDAQ: ANGI) and Leaf Group (NYSE:LFGR) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for ANGI Homeservices and Leaf Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ANGI Homeservices 1 5 5 0 2.36
Leaf Group 0 1 4 0 2.80

ANGI Homeservices currently has a consensus price target of $11.92, suggesting a potential upside of 9.23%. Leaf Group has a consensus price target of $10.30, suggesting a potential upside of 6.74%. Given ANGI Homeservices’ higher probable upside, analysts clearly believe ANGI Homeservices is more favorable than Leaf Group.

Profitability

This table compares ANGI Homeservices and Leaf Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ANGI Homeservices -17.04% -25.20% -14.67%
Leaf Group -25.98% -44.59% -34.40%

Risk and Volatility

ANGI Homeservices has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, Leaf Group has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Earnings and Valuation

This table compares ANGI Homeservices and Leaf Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ANGI Homeservices $323.33 million 2.11 -$7.85 million ($0.12) -90.91
Leaf Group $113.45 million 1.77 -$2.01 million ($1.58) -6.11

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

Institutional & Insider Ownership

68.7% of ANGI Homeservices shares are held by institutional investors. Comparatively, 63.4% of Leaf Group shares are held by institutional investors. 18.2% of ANGI Homeservices shares are held by company insiders. Comparatively, 47.6% of Leaf Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

ANGI Homeservices beats Leaf Group on 10 of the 14 factors compared between the two stocks.

About ANGI Homeservices

ANGI Homeservices Inc. is focused on creating digital marketplace for home services, connecting homeowners across the globe with home service professionals. The Company operates 10 brands including Angie’s List, HomeAdvisor, HomeStars, Instapro, MyBuilder, MyHammer, Travaux, Werkspot, CraftJack and mHelpDesk. The Company’s brand portfolio provides homeowners with tools and resources for home repair, maintenance and improvement projects. Angie’s List is America’s online review platform and provides services ranging from home repair, maintenance and improvement to auto service and health care. HomeAdvisor is the operator of the home services marketplace across the globe. HomeStars is online platform connecting homeowners with home renovators, repairmen and retailers throughout Canada. Instapro is Italy’s home services network connecting homeowners with service professionals for home renovation projects.

About Leaf Group

Leaf Group Ltd., formerly Demand Media, Inc., is diversified Internet marketplaces and media company. The Company has online media properties and marketplace platforms that enable communities of creators to reach audiences in lifestyle categories. The Company operates an online studio platform for the professional creation and distribution of content, as well as two online artist marketplaces. Its business comprises two service offerings: Content & Media and Marketplaces. The Company creates media content, including text articles, videos, photographs and designed visual formats, and publishes such content to its owned and operated online properties and to its customers’ online properties. The Company also offers its content creation and distribution platform to provide custom content and other content marketing solutions to brands, publishers and advertisers.

Receive News & Ratings for ANGI Homeservices Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ANGI Homeservices and related companies with MarketBeat.com's FREE daily email newsletter.