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

LegalZoom.com, Inc. and Transcat, Inc. are both Specialty Business Services companies. LegalZoom.com, Inc. is the larger, with a market value of $967.7M against $806.2M — 1.2× the size. LegalZoom.com, Inc. trades at the lower P/E: 58.4× against 237×. Transcat, Inc. grew revenue faster over the last twelve months: 20.9% against 12.3%. LegalZoom.com, Inc. has the higher net margin (2.13% vs 0.99%) and the lower return on invested capital (0.00% vs 1.79%). 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 58.36 237.11 23.86
P/S 1.21 2.36 1.06
P/B 7.52 2.71 2.37
Price to free cash flow 6.39 32.35 16.54
EV/EBITDA 9.84 23.54 11.51
EV/Sales 1.01 2.66 1.51
Earnings yield 1.71% 0.42% 2.14%
Free cash flow yield 15.65% 3.09% 1.55%

Profitability

Metric LZ TRNS Specialty Business Services median
Gross margin 66.70% 32.50% 35.31%
Operating margin 4.10% 3.34% 3.43%
Net margin 2.13% 0.99% 1.67%
Free cash flow margin 18.88% 7.28% 3.28%
Return on equity 10.49% 1.16% 0.58%
Return on assets 3.34% 0.78% 0.33%
Return on invested capital 0.00% 1.79% 0.65%

Growth

Metric LZ TRNS Specialty Business Services median
Revenue growth (TTM) 12.26% 20.91% 6.04%
EPS growth (last fiscal year) (50.00%) (63.69%) —
Revenue growth, 5-year CAGR 9.94% 13.87% 7.66%
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 0.36 0.21
Current ratio 0.67 2.49 1.62
Net debt to EBITDA (2.80) 2.40 1.16

Dividend

Metric LZ TRNS Specialty Business Services median
Dividend yield — — 1.61%
Payout ratio 0.00 0.00 0.00

Size

Metric LZ TRNS Specialty Business Services median
Market cap 967.65m 806.16m 879.14m

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