Reviewing LegalZoom.com (NASDAQ:LZ) & Bouygues (OTCMKTS:BOUYF)

LegalZoom.com (NASDAQ:LZ) and Bouygues (OTCMKTS:BOUYF) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.

Volatility and Risk

LegalZoom.com has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, Bouygues has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500.

Profitability

This table compares LegalZoom.com and Bouygues’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LegalZoom.com	4.39%	28.00%	6.96%
Bouygues	1.86%	7.52%	1.70%

Institutional and Insider Ownership

82.0% of LegalZoom.com shares are owned by institutional investors. 5.9% of LegalZoom.com shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares LegalZoom.com and Bouygues”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LegalZoom.com	$681.88 million	2.35	$29.96 million	$0.17	52.00
Bouygues	$61.42 billion	1.36	$1.14 billion	$3.03	14.60

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

Analyst Ratings

This is a summary of recent ratings and price targets for LegalZoom.com and Bouygues, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LegalZoom.com	2	5	2	0	2.00
Bouygues	1	0	1	0	2.00

LegalZoom.com currently has a consensus target price of $8.64, suggesting a potential downside of 2.23%. Given LegalZoom.com’s higher possible upside, equities research analysts plainly believe LegalZoom.com is more favorable than Bouygues.

Summary

LegalZoom.com beats Bouygues on 10 of the 13 factors compared between the two stocks.

About LegalZoom.com

LegalZoom.com, Inc., together with its subsidiaries, operates an online platform that supports the legal, compliance, and business management needs of small businesses and consumers in the United States. The company’s platform offers business formation products, such as limited liability company, incorporation of C and S corporations, nonprofit formations, doing-business-as, corporate changes and filings, business licenses, legal forms, and beneficial ownership information reports; intellectual property products consisting of trademark and patent applications, and copyright registrations; and tax services, including business and personal tax preparations. It also provides consumer, estate planning, and other services comprising last will and testament, living will, living trust, power of attorney, and name change. In addition, the company offers subscriptions services, including registered agent, compliance, attorney advice, tax advice and preparation, eSignature, virtual mail and check deposit services, trademark monitoring, and estate planning bundle. The company was incorporated in 1999 and is headquartered in Mountain View, California.

About Bouygues

Bouygues SA, together with its subsidiaries, operates in the construction, energy, telecom, media, and transport infrastructure sectors in France and internationally. The company designs, builds, renovates, operates, and deconstructs building, infrastructure, and industrial projects; develops urban planning, residential, and commercial projects; builds and maintains roads and motorways, airport runways, ports, industrial logistics hubs, external works and amenities, reserved-lane public transport, recreational facilities, and environmental projects, as well as undertakes civil engineering, road safety, and signaling activities; produces, distributes, sells, and recycles aggregates, emulsions, asphalt mixes, ready-mix concrete, and bitumen; construction, renewal, and maintenance of rail networks; and installation and maintenance of pipes and pipelines. It also provides design, installation, and maintenance services in various fields that include cooling and fire protection, digital and ICT, electrical, and mechanical and robotics, as well as heating, ventilation, and air conditioning. In addition, the company produces TF1, TMC, TFX, TF1, and LCI complementary TV channels; operates Ushuaïa TV, Histoire TV, TV Breizh, and Serieclub channels; produces, broadcasts, and distributes content; operates la seine musical entertainment and concert venue; and entertainment and leisure comprising licenses, podcasts, music production, and live events. Further, it offers telecom services; and mobile and fixed network services. The company was founded in 1952 and is based in Paris, France.