IAC (NASDAQ:IAC – Get Free Report) and Locafy (NASDAQ:LCFY – Get Free Report) are both multi-sector conglomerates companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.
Valuation and Earnings
This table compares IAC and Locafy”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| IAC | $3.81 billion | 0.98 | -$539.90 million | ($6.52) | -7.09 |
| Locafy | $2.76 million | 4.19 | -$1.96 million | ($1.23) | -6.81 |
Locafy has lower revenue, but higher earnings than IAC. IAC is trading at a lower price-to-earnings ratio than Locafy, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| IAC | 0 | 2 | 10 | 0 | 2.83 |
| Locafy | 0 | 0 | 0 | 0 | 0.00 |
IAC currently has a consensus target price of $64.67, suggesting a potential upside of 39.83%. Given IAC’s stronger consensus rating and higher probable upside, equities analysts clearly believe IAC is more favorable than Locafy.
Insider & Institutional Ownership
88.9% of IAC shares are owned by institutional investors. Comparatively, 0.0% of Locafy shares are owned by institutional investors. 20.5% of IAC shares are owned by insiders. Comparatively, 28.7% of Locafy shares 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.
Profitability
This table compares IAC and Locafy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| IAC | -14.18% | -7.98% | -5.24% |
| Locafy | -58.48% | -64.65% | -36.58% |
Risk & Volatility
IAC has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, Locafy has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500.
Summary
IAC beats Locafy on 8 of the 14 factors compared between the two stocks.
About IAC
IAC Inc., together with its subsidiaries, operates as a media and internet company worldwide. The company publishes original and engaging digital content in the form of articles, illustrations, and videos and images across entertainment, food, home, beauty, travel, health, family, luxury, and fashion areas; and magazines related to women and lifestyle. It also operates a digital marketplace that connects home service professionals with consumers for repairing, remodeling, cleaning, landscaping, maintenance, and enhancement services under the Angi Ads, Angi Leads, and Angi Services brands. In addition, the company operates websites that offer general search services and information, including Ask.com, a search site with a variety of fresh and contemporary content; Reference.com that offers content across select vertical categories; Consumersearch.com, which offers content designed to simplify the product research process; and Shopping.net, a vertical shopping search site that contains a mix of search services and/or content targeted to various user or segment demographics, as well as offers direct-to-consumer downloadable desktop applications. Further, it offers Care.com, an online destination for families to connect with caregivers for their children, aging parents, pets, and homes; develops and provides subscription mobile applications across the communication, language, weather, business, health, and lifestyle verticals; a technology driven staffing platform for flexible W-2 work under the Bluecrew name; a platform to connect healthcare professionals with job opportunities under the Vivian Health name; The Daily Beast, a website dedicated to news, commentary, culture, and entertainment that publishes original reporting and opinion; and production and producer services for feature films for sale and distribution through theatrical releases and video-on-demand services. The company was formerly known as IAC/InterActiveCorp. The company is headquartered in New York, New York.
About Locafy
Locafy Limited operates as a software-as-a-service company (SaaS) that specializes in search engine marketing in Australia, New Zealand, Europe, North America, and internationally. The company operates in three segments: Publishing, Direct Sales, and Reseller Sales. It focuses on commercializing its SaaS online publishing technology platform that comprises an integrated suite of solutions. The company also owns and operates several online directories and offers search engine optimization solutions, which include creation of proximity pages and proximity networks, local pages, and map pack booster. In addition, its platform publishes content to various devices that uses a web browser to display web content, as well as programmatically optimizes the published content for local search. The company offers its solutions directly to customers, as well as through digital agencies and search engine optimization freelancers. The company was formerly known as Moboom Limited and changed its name to Locafy Limited in January 2021. Locafy Limited was incorporated in 2009 and is based in Subiaco, Australia.
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