Head-To-Head Contrast: Leaf Group (DMD) & Tucows (TCX)

Leaf Group (NYSE: DMD) and Tucows (NASDAQ:TCX) are both small-cap internet services – nec companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

This table compares Leaf Group and Tucows’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Leaf Group -31.38% -52.73% -41.29%
Tucows 4.85% 35.17% 5.02%

Volatility & Risk

Leaf Group has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500. Comparatively, Tucows has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.

Institutional & Insider Ownership

58.8% of Leaf Group shares are owned by institutional investors. Comparatively, 45.8% of Tucows shares are owned by institutional investors. 44.0% of Leaf Group shares are owned by insiders. Comparatively, 13.2% of Tucows shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Leaf Group and Tucows, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Leaf Group 0 0 0 0 N/A
Tucows 0 0 0 0 N/A

Earnings & Valuation

This table compares Leaf Group and Tucows’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Leaf Group N/A N/A N/A ($1.59) -3.99
Tucows $189.82 million 3.28 $16.06 million $1.30 45.31

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

Summary

Tucows beats Leaf Group on 6 of the 8 factors compared between the two stocks.

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.

About Tucows

Tucows Inc. is engaged in providing Internet services. The Company’s segments include Network Access Services and Domain Services. The Network Access Services segment includes mobile, fixed high-speed Internet access services, Internet hosting and network consulting services. The Domain Services segment wholesale and retail domain name registration services, value added services and portfolio services. The Company focuses on serving the needs of this network of resellers by providing services, interfaces, proactive and attentive customer service, reseller-oriented technology and agile design and development processes. The Company focuses its service offerings under brands, including OpenSRS, YummyNames, Platypus, Hover and Ting. As of December 31, 2016, the OpenSRS Domain Service managed 15 million domain names under the Tucows ICANN registrar accreditation and for other registrars. As of December 31, 2016, Ting managed mobile telephony services for approximately 151,000 subscribers.

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

Latest News

Leave a Reply