Financial Analysis: ReachLocal (RLOC) & Its Competitors

ReachLocal (NASDAQ: RLOC) is one of 34 public companies in the “Advertising & Marketing” industry, but how does it compare to its peers? We will compare ReachLocal to related businesses based on the strength of its institutional ownership, earnings, profitability, risk, valuation, analyst recommendations and dividends.

Insider & Institutional Ownership

54.1% of shares of all “Advertising & Marketing” companies are owned by institutional investors. 24.6% of shares of all “Advertising & Marketing” companies are owned by 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.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
ReachLocal N/A N/A -2.79
ReachLocal Competitors $2.71 billion $171.61 million -469.32

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

Analyst Recommendations

This is a summary of current recommendations for ReachLocal and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ReachLocal 0 0 0 0 N/A
ReachLocal Competitors 61 456 908 16 2.61

As a group, “Advertising & Marketing” companies have a potential upside of 22.80%. Given ReachLocal’s peers higher probable upside, analysts clearly believe ReachLocal has less favorable growth aspects than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
ReachLocal -5.20% N/A -15.27%
ReachLocal Competitors -3.06% -6.58% -0.74%

Summary

ReachLocal peers beat ReachLocal on 6 of the 8 factors compared.

ReachLocal Company Profile

ReachLocal, Inc. (ReachLocal) offers a range of online marketing and reporting solutions. The Company’s digital marketing solution consists of products and solutions in three categories: digital advertising (including ReachSearch, ReachDisplay, ReachDisplay InApp and ReachRetargeting); Web presence (including ReachSite+ReachEdge, ReachSEO, ReachCast, ReachListings and TotalLiveChat), and software (ReachEdge and Kickserv). It focuses on small to medium-sized businesses (SMBs). The Company delivers its suite of products and solutions to local businesses through a combination of its technology platform, its direct inside and outside sales force, and select third-party agencies and resellers. It also focuses on certain core verticals, which include home services, professional services, specialty services and healthcare. It also provides solutions to multi-location advertisers, such as franchises and other businesses that have multiple locations across a number of cities and states.

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

Leave a Reply