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

LegalZoom.com, Inc. and Target Hospitality Corp. are both Specialty Business Services companies. Target Hospitality Corp. is the larger, with a market value of $1.6B against $1.1B — 1.5× the size. Target Hospitality Corp. has negative trailing earnings, so its P/E is not meaningful; LegalZoom.com, Inc. trades at 62.9×. LegalZoom.com, Inc. grew revenue faster over the last twelve months: 12.3% against 11.9%. LegalZoom.com, Inc. has the higher net margin (2.13% 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 20 and Target Hospitality Corp. on 1.

Valuation

Metric LZ TH Specialty Business Services median
P/E 62.93 n/m 24.35
P/S 1.30 4.46 1.05
P/B 8.11 4.19 2.27
Price to free cash flow 6.89 148.56 16.71
EV/EBITDA 16.97 42.68 11.55
EV/Sales 1.74 5.08 1.53
Earnings yield 1.59% (2.44%) 1.82%
Free cash flow yield 14.51% 0.67% 1.51%

Profitability

Metric LZ TH Specialty Business Services median
Gross margin 66.70% 13.73% 35.31%
Operating margin 4.10% (11.10%) 3.43%
Net margin 2.13% (10.85%) 1.67%
Free cash flow margin 18.88% 3.00% 3.28%
Return on equity 10.49% (9.78%) 0.00%
Return on assets 3.34% (6.34%) 0.00%
Return on invested capital 0.00% (5.94%) 0.65%

Growth

Metric LZ TH Specialty Business Services median
Revenue growth (TTM) 12.26% 11.92% 6.30%
EPS growth (last fiscal year) (50.00%) (152.86%) 6.56%
Revenue growth, 5-year CAGR 9.94% 7.33% 7.66%
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 0.21
Current ratio 0.67 0.65 1.62
Net debt to EBITDA (2.80) (0.17) 1.16

Dividend

Metric LZ TH Specialty Business Services median
Dividend yield — — 2.27%
Payout ratio — — 0.35

Size

Metric LZ TH Specialty Business Services median
Market cap 1.06b 1.60b 796.45m

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