LegalZoom.com, Inc. (LZ) vs Transcat, Inc. (TRNS)

LegalZoom.com, Inc. and Transcat, Inc. are both Specialty Business Services companies. LegalZoom.com, Inc. and Transcat, Inc. are of similar size ($1.0B and $944.1M). LegalZoom.com, Inc. trades at the lower P/E: 51.2× against 208×. Transcat, Inc. grew revenue faster over the last twelve months: 20.0% against 9.62%. LegalZoom.com, Inc. has the higher net margin (2.56% vs 1.26%) and the lower return on invested capital (0.00% vs 1.96%). Across the 22 metrics below, LegalZoom.com, Inc. leads on 17 and Transcat, Inc. on 5.

Valuation

Metric LZ TRNS Specialty Business Services median
P/E 51.25 207.62 24.48
P/S 1.25 2.61 1.09
P/B 7.37 3.07 2.23
Price to free cash flow 7.28 41.33 16.92
EV/EBITDA 16.36 25.76 10.82
EV/Sales 1.67 2.92 1.47
Earnings yield 1.95% 0.48% 1.88%
Free cash flow yield 13.73% 2.42% 1.36%

Profitability

Metric LZ TRNS Specialty Business Services median
Gross margin 67.56% 32.79% 31.71%
Operating margin 4.96% 3.63% 3.53%
Net margin 2.56% 1.26% 1.88%
Free cash flow margin 17.15% 6.32% 3.18%
Return on equity 12.11% 1.52% 0.00%
Return on assets 3.98% 0.93% 0.00%
Return on invested capital 0.00% 1.96% 0.00%

Growth

Metric LZ TRNS Specialty Business Services median
Revenue growth (TTM) 9.62% 20.04% 6.04%
EPS growth (last fiscal year) (50.00%) (63.69%) 3.41%
Revenue growth, 5-year CAGR 9.94% 13.87% 7.60%
Net income growth, 5-year CAGR 16.26% (7.15%) 0.00%

Health

Metric LZ TRNS Specialty Business Services median
Debt to equity 0.00 0.38 0.24
Current ratio 0.72 2.57 1.79
Net debt to EBITDA (2.80) 2.40 0.69

Dividend

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

Size

Metric LZ TRNS Specialty Business Services median
Market cap 1.02b 944.06m 704.72m

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