Limelight Networks (NASDAQ:LLNW) and China Customer Relations Centers (NASDAQ:CCRC) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.
Profitability
This table compares Limelight Networks and China Customer Relations Centers' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Limelight Networks | -3.62% | -4.51% | -3.16% |
| China Customer Relations Centers | N/A | N/A | N/A |
Valuation and Earnings
This table compares Limelight Networks and China Customer Relations Centers' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Limelight Networks | $200.63 million | 2.20 | $-16,040,000.00 | ($0.14) | -25.36 |
| China Customer Relations Centers | $173.41 million | 0.66 | $13.06 million | N/A | N/A |
China Customer Relations Centers has lower revenue, but higher earnings than Limelight Networks.
Institutional and Insider Ownership
78.2% of Limelight Networks shares are held by institutional investors. Comparatively, 0.2% of China Customer Relations Centers shares are held by institutional investors. 10.4% of Limelight Networks shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Limelight Networks and China Customer Relations Centers, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Limelight Networks | 1 | 7 | 2 | 0 | 2.10 |
| China Customer Relations Centers | 0 | 0 | 0 | 0 | N/A |
Limelight Networks presently has a consensus price target of $6.2250, indicating a potential upside of 75.35%. Given Limelight Networks' higher possible upside, research analysts clearly believe Limelight Networks is more favorable than China Customer Relations Centers.
Volatility and Risk
Limelight Networks has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, China Customer Relations Centers has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500.
Summary
Limelight Networks beats China Customer Relations Centers on 7 of the 11 factors compared between the two stocks.
