SEA (NYSE:SE) and Limelight Networks (NASDAQ:LLNW) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.
Risk and Volatility
SEA has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Limelight Networks has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500.
Valuation & Earnings
This table compares SEA and Limelight Networks' revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
SEA | $2.18 billion | 35.05 | $-1,462,800,000.00 | ($2.27) | -102.71 |
Limelight Networks | $200.63 million | 2.65 | $-16,040,000.00 | ($0.14) | -30.93 |
Limelight Networks has lower revenue, but higher earnings than SEA. SEA is trading at a lower price-to-earnings ratio than Limelight Networks, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
74.4% of SEA shares are owned by institutional investors. Comparatively, 78.2% of Limelight Networks shares are owned by institutional investors. 0.2% of SEA shares are owned by company insiders. Comparatively, 10.4% of Limelight Networks shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current recommendations and price targets for SEA and Limelight Networks, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
SEA | 1 | 2 | 6 | 1 | 2.70 |
Limelight Networks | 0 | 4 | 6 | 0 | 2.60 |
SEA currently has a consensus target price of $156.5455, indicating a potential downside of 32.86%. Limelight Networks has a consensus target price of $7.4688, indicating a potential upside of 72.49%. Given Limelight Networks' higher possible upside, analysts clearly believe Limelight Networks is more favorable than SEA.
Profitability
This table compares SEA and Limelight Networks' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
SEA | -38.59% | -144.79% | -22.93% |
Limelight Networks | -3.62% | -4.51% | -3.16% |
Summary
Limelight Networks beats SEA on 9 of the 14 factors compared between the two stocks.