Critical Comparison: LegalZoom.com (NASDAQ:LZ) vs. CooTek (Cayman) (NYSE:CTK)

CooTek (Cayman) (NYSE:CTKGet Rating) and LegalZoom.com (NASDAQ:LZGet Rating) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Institutional and Insider Ownership

6.5% of CooTek (Cayman) shares are owned by institutional investors. Comparatively, 51.2% of LegalZoom.com shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares CooTek (Cayman) and LegalZoom.com’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CooTek (Cayman) -4.82% N/A -11.73%
LegalZoom.com -21.77% -1,446.94% -29.38%

Earnings and Valuation

This table compares CooTek (Cayman) and LegalZoom.com’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CooTek (Cayman) $272.15 million 0.01 -$13.88 million ($2.86) -0.13
LegalZoom.com $575.08 million 4.76 -$108.66 million ($0.77) -17.91

CooTek (Cayman) has higher earnings, but lower revenue than LegalZoom.com. LegalZoom.com is trading at a lower price-to-earnings ratio than CooTek (Cayman), indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations for CooTek (Cayman) and LegalZoom.com, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CooTek (Cayman) 0 0 0 0 N/A
LegalZoom.com 0 4 6 0 2.60

LegalZoom.com has a consensus price target of $26.25, suggesting a potential upside of 90.36%. Given LegalZoom.com’s higher probable upside, analysts plainly believe LegalZoom.com is more favorable than CooTek (Cayman).

Summary

LegalZoom.com beats CooTek (Cayman) on 6 of the 10 factors compared between the two stocks.

About CooTek (Cayman) (Get Rating)

CooTek (Cayman) Inc. operates as a mobile internet company in the United States, the People's Republic of China, the United States, and internationally. Its primary product is TouchPal Smart Input, an input method for mobile devices that supports approximately 110 languages. The company also offers Fengdu Novel, a mobile application that provides users with free online novels; Fengdu Audiobooks; and short video series based on Fengdu Literature Platform content and IP resources. In addition, it provides casual games, including simulation games, such as Farm Hero and Idle Land King Tycoon; puzzle games comprising Hi Hamster; and educational games, such as Puzzle No. 1 and Idiom Hero. Further, the company offers fitness applications comprising Walk Walk; Drink Water Reminder that helps users drink an appropriate amount of water on a daily basis; Happy Jogging, a free pedometer mobile application; and Hailaidian, a mobile application that provides pictures, videos, and music to decorate the call interface and help users have fun when receiving phone calls. It distributes its products and acquires users primarily through user downloads from digital distribution platforms and pre-installations on mobile devices. CooTek (Cayman) Inc. was founded in 2008 and is headquartered in Shanghai, the People's Republic of China.

About LegalZoom.com (Get Rating)

LegalZoom.com, Inc. operates an online platform for legal and compliance solutions in the United States. The company's platform offers products and services, including business formations, creating estate planning documents, protecting intellectual property, completing certain forms and agreements, providing access to independent attorney advice, and connecting customers with experts for tax preparation and bookkeeping services. It serves small businesses and individuals. LegalZoom.com, Inc. was incorporated in 1999 and is headquartered in Glendale, California.

Want More Great Investing Ideas?

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