Financial Comparison: ReachLocal (RLOC) and Its Competitors

ReachLocal (NASDAQ: RLOC) is one of 33 publicly-traded companies in the “Advertising & Marketing” industry, but how does it weigh in compared to its competitors? We will compare ReachLocal to similar companies based on the strength of its profitability, analyst recommendations, risk, dividends, valuation, institutional ownership and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
ReachLocal -5.20% N/A -15.27%
ReachLocal Competitors -3.31% -7.17% -0.92%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for ReachLocal and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ReachLocal 0 0 0 0 N/A
ReachLocal Competitors 61 426 868 16 2.61

As a group, “Advertising & Marketing” companies have a potential upside of 18.54%. Given ReachLocal’s competitors higher probable upside, analysts plainly believe ReachLocal has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares ReachLocal and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
ReachLocal N/A N/A -2.79
ReachLocal Competitors $2.71 billion $171.61 million -1,120.42

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

Institutional and Insider Ownership

54.1% of shares of all “Advertising & Marketing” companies are held by institutional investors. 23.9% of shares of all “Advertising & Marketing” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

ReachLocal competitors beat ReachLocal on 6 of the 8 factors compared.

About ReachLocal

ReachLocal, Inc. (ReachLocal) offers a range of online marketing and reporting solutions. The Company’s digital marketing solution consists of products and solutions in three categories: digital advertising (including ReachSearch, ReachDisplay, ReachDisplay InApp and ReachRetargeting); Web presence (including ReachSite+ReachEdge, ReachSEO, ReachCast, ReachListings and TotalLiveChat), and software (ReachEdge and Kickserv). It focuses on small to medium-sized businesses (SMBs). The Company delivers its suite of products and solutions to local businesses through a combination of its technology platform, its direct inside and outside sales force, and select third-party agencies and resellers. It also focuses on certain core verticals, which include home services, professional services, specialty services and healthcare. It also provides solutions to multi-location advertisers, such as franchises and other businesses that have multiple locations across a number of cities and states.

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