Limelight Networks (NASDAQ:LLNW) vs. Its Competitors Financial Review

Limelight Networks (NASDAQ: LLNW) is one of 185 publicly-traded companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its peers? We will compare Limelight Networks to similar companies based on the strength of its earnings, profitability, dividends, analyst recommendations, risk, institutional ownership and valuation.

Analyst Ratings

This is a summary of current ratings and recommmendations for Limelight Networks and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Limelight Networks 0 1 3 0 2.75
Limelight Networks Competitors 832 4749 7542 182 2.53

Limelight Networks currently has a consensus target price of $5.00, indicating a potential upside of 18.20%. As a group, “IT Services & Consulting” companies have a potential downside of 10.94%. Given Limelight Networks’ stronger consensus rating and higher possible upside, equities analysts clearly believe Limelight Networks is more favorable than its peers.

Profitability

This table compares Limelight Networks and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Limelight Networks -5.91% -3.29% -2.26%
Limelight Networks Competitors -22.74% -276.16% -5.01%

Valuation & Earnings

This table compares Limelight Networks and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Limelight Networks $168.23 million -$73.92 million -42.30
Limelight Networks Competitors $2.84 billion $293.55 million 348.59

Limelight Networks’ peers have higher revenue and earnings than Limelight Networks. Limelight Networks is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Limelight Networks has a beta of 2.54, indicating that its stock price is 154% more volatile than the S&P 500. Comparatively, Limelight Networks’ peers have a beta of 1.15, indicating that their average stock price is 15% more volatile than the S&P 500.

Insider & Institutional Ownership

70.0% of Limelight Networks shares are owned by institutional investors. Comparatively, 62.4% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 37.6% of Limelight Networks shares are owned by company insiders. Comparatively, 16.5% of shares of all “IT Services & Consulting” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Limelight Networks beats its peers on 9 of the 13 factors compared.

Limelight Networks Company Profile

Limelight Networks, Inc. operates a distributed network and provides a suite of integrated services marketed as the Limelight Orchestrate Platform. The Company is engaged in providing content delivery and related services and solutions for global businesses to help them deliver their digital content across Internet, mobile, and social channels. Its services include content delivery services, mobile delivery services, video content management services, performance services, cloud-based storage services and cloud-based content security services. Its solutions include software and device manufacturers, media and broadcasters, and gaming. Limelight services incorporate content and application security, file management, video transformation, distributed storage functionality, and the analytics and reporting associated with them. The Company operates in three geographic areas: Americas; Europe, the Middle East and Africa (EMEA), and Asia Pacific.

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