Head-To-Head Contrast: Limelight Networks (LLNW) versus Its Rivals

Limelight Networks (NASDAQ: LLNW) is one of 184 publicly-traded companies in the “IT Services & Consulting” industry, but how does it contrast to its competitors? We will compare Limelight Networks to similar businesses based on the strength of its valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Analyst Recommendations

This is a summary of recent ratings and price targets for Limelight Networks and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Limelight Networks 0 1 3 0 2.75
Limelight Networks Competitors 771 4745 7445 180 2.54

Limelight Networks currently has a consensus target price of $5.00, indicating a potential upside of 6.38%. As a group, “IT Services & Consulting” companies have a potential downside of 9.85%. Given Limelight Networks’ stronger consensus rating and higher possible upside, analysts clearly believe Limelight Networks is more favorable than its competitors.

Institutional & Insider Ownership

70.0% of Limelight Networks shares are owned by institutional investors. Comparatively, 63.0% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 37.6% of Limelight Networks shares are owned by insiders. Comparatively, 16.5% of shares of all “IT Services & Consulting” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Limelight Networks and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Limelight Networks $168.23 million -$73.92 million -47.00
Limelight Networks Competitors $2.79 billion $288.44 million 364.09

Limelight Networks’ competitors have higher revenue and earnings than Limelight Networks. Limelight Networks is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Limelight Networks has a beta of 2.54, suggesting that its stock price is 154% more volatile than the S&P 500. Comparatively, Limelight Networks’ competitors have a beta of 1.09, suggesting that their average stock price is 9% more volatile than the S&P 500.

Profitability

This table compares Limelight Networks and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Limelight Networks -5.91% -3.29% -2.26%
Limelight Networks Competitors -22.47% -276.69% -4.96%

Summary

Limelight Networks beats its competitors on 9 of the 13 factors compared.

About Limelight Networks

Limelight Networks, Inc. operates a distributed network and provides a suite of integrated services marketed as the Limelight Orchestrate Platform. The Company is engaged in providing content delivery and related services and solutions for global businesses to help them deliver their digital content across Internet, mobile, and social channels. Its services include content delivery services, mobile delivery services, video content management services, performance services, cloud-based storage services and cloud-based content security services. Its solutions include software and device manufacturers, media and broadcasters, and gaming. Limelight services incorporate content and application security, file management, video transformation, distributed storage functionality, and the analytics and reporting associated with them. The Company operates in three geographic areas: Americas; Europe, the Middle East and Africa (EMEA), and Asia Pacific.

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