LegalZoom.com, Inc. (LZ) vs Target Hospitality Corp. (TH)

LegalZoom.com, Inc. and Target Hospitality Corp. are both Specialty Business Services companies. LegalZoom.com, Inc. and Target Hospitality Corp. are of similar size ($1.0B and $1.0B). Target Hospitality Corp. has negative trailing earnings, so its P/E is not meaningful; LegalZoom.com, Inc. trades at 51.2×. Target Hospitality Corp. grew revenue faster over the last twelve months: 11.9% against 9.62%. LegalZoom.com, Inc. has the higher net margin (2.56% vs −10.9%) and the higher return on invested capital (0.00% vs −5.94%). Across the 21 metrics below, LegalZoom.com, Inc. leads on 19 and Target Hospitality Corp. on 2.

Valuation

Metric LZ TH Specialty Business Services median
P/E 51.25 n/m 24.48
P/S 1.25 3.04 1.09
P/B 7.37 2.85 2.23
Price to free cash flow 7.28 101.09 16.92
EV/EBITDA 16.36 30.71 10.82
EV/Sales 1.67 3.66 1.47
Earnings yield 1.95% (3.59%) 1.88%
Free cash flow yield 13.73% 0.99% 1.36%

Profitability

Metric LZ TH Specialty Business Services median
Gross margin 67.56% 13.73% 31.71%
Operating margin 4.96% (11.10%) 3.53%
Net margin 2.56% (10.85%) 1.88%
Free cash flow margin 17.15% 3.00% 3.18%
Return on equity 12.11% (9.78%) 0.00%
Return on assets 3.98% (6.34%) 0.00%
Return on invested capital 0.00% (5.94%) 0.00%

Growth

Metric LZ TH Specialty Business Services median
Revenue growth (TTM) 9.62% 11.92% 6.04%
EPS growth (last fiscal year) (50.00%) (152.86%) 3.41%
Revenue growth, 5-year CAGR 9.94% 7.33% 7.60%
Net income growth, 5-year CAGR 16.26% 0.00% 0.00%

Health

Metric LZ TH Specialty Business Services median
Debt to equity 0.00 0.11 0.24
Current ratio 0.72 0.65 1.79
Net debt to EBITDA (2.80) (0.17) 0.69

Dividend

Metric LZ TH Specialty Business Services median
Dividend yield — — 2.19%
Payout ratio — — 0.37

Size

Metric LZ TH Specialty Business Services median
Market cap 1.02b 1.04b 704.72m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack