LogMeIn (LOGM) and Its Competitors Critical Survey

LogMeIn (NASDAQ: LOGM) is one of 187 publicly-traded companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its competitors? We will compare LogMeIn to related companies based on the strength of its dividends, profitability, analyst recommendations, risk, earnings, institutional ownership and valuation.

Volatility and Risk

LogMeIn has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, LogMeIn’s competitors have a beta of 1.12, meaning that their average share price is 12% more volatile than the S&P 500.

Dividends

LogMeIn pays an annual dividend of $1.00 per share and has a dividend yield of 0.9%. LogMeIn pays out 909.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “IT Services & Consulting” companies pay a dividend yield of 1.5% and pay out 37.9% of their earnings in the form of a dividend. LogMeIn lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider and Institutional Ownership

99.3% of LogMeIn shares are owned by institutional investors. Comparatively, 61.4% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 2.5% of LogMeIn shares are owned by company insiders. Comparatively, 17.0% of shares of all “IT Services & Consulting” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares LogMeIn and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LogMeIn 1.01% 5.50% 4.23%
LogMeIn Competitors -19.52% -248.92% -3.46%

Analyst Recommendations

This is a breakdown of recent ratings for LogMeIn and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LogMeIn 0 1 8 0 2.89
LogMeIn Competitors 752 4705 7485 175 2.54

LogMeIn presently has a consensus price target of $141.71, indicating a potential upside of 25.30%. As a group, “IT Services & Consulting” companies have a potential downside of 9.42%. Given LogMeIn’s stronger consensus rating and higher probable upside, equities research analysts plainly believe LogMeIn is more favorable than its competitors.

Valuation and Earnings

This table compares LogMeIn and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
LogMeIn $336.07 million $2.63 million 1,028.28
LogMeIn Competitors $2.79 billion $288.44 million 334.33

LogMeIn’s competitors have higher revenue and earnings than LogMeIn. LogMeIn is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

LogMeIn beats its competitors on 8 of the 15 factors compared.

LogMeIn Company Profile

LogMeIn, Inc. provides a portfolio of cloud-based service offerings, which helps people and businesses to connect to their workplace, colleagues and customers. The Company’s core cloud-based services are categorized into four business lines: Communications and Collaboration; Engagement and Support; Identity and Access, and Additional Service Offerings. The Company’s communication and collaboration services include GoToMeeting; GoToTraining; GoToWebinar; join.me, join.me pro and join.me enterprise; OpenVoice, and Grasshopper. The Company’s customer engagement and support services include BoldChat; GoToAssist, GoToAssist Corporate and GoToAssist Seeit; LogMeIn Rescue, Rescue Lens and LogMeIn Rescue+Mobile, and Xively. Its identity and access management services include LogMeIn Central, GoToMyPC, LogMeIn Pro and LastPass. Its additional service offerings include LogMeIn Backup, LogMeIn Hamachi and RemotelyAnywhere.

Receive News & Ratings for LogMeIn Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for LogMeIn and related companies with MarketBeat.com's FREE daily email newsletter.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit