IAC (NASDAQ:IAC) vs. Locafy (NASDAQ:LCFY) Financial Comparison

IAC (NASDAQ:IAC) and Locafy (NASDAQ:LCFY) are both multi-sector conglomerates companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and price targets for IAC and Locafy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IAC	0	2	10	0	2.83
Locafy	0	0	0	0	0.00

IAC presently has a consensus price target of $64.67, suggesting a potential upside of 41.13%. Given IAC’s stronger consensus rating and higher possible upside, equities research analysts clearly believe IAC is more favorable than Locafy.

Risk and Volatility

IAC has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, Locafy has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500.

Earnings & Valuation

This table compares IAC and Locafy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IAC	$3.81 billion	0.97	-$539.90 million	($6.52)	-7.03
Locafy	$3.85 million	2.46	-$1.96 million	($1.23)	-5.57

Locafy has lower revenue, but higher earnings than IAC. IAC is trading at a lower price-to-earnings ratio than Locafy, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares IAC and Locafy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IAC	-14.18%	-7.98%	-5.24%
Locafy	-58.48%	-64.65%	-36.58%

Institutional and Insider Ownership

88.9% of IAC shares are owned by institutional investors. Comparatively, 0.0% of Locafy shares are owned by institutional investors. 20.5% of IAC shares are owned by company insiders. Comparatively, 28.7% of Locafy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

IAC beats Locafy on 8 of the 14 factors compared between the two stocks.

About IAC

IAC Inc., together with its subsidiaries, operates as a media and internet company worldwide. The company publishes original and engaging digital content in the form of articles, illustrations, and videos and images across entertainment, food, home, beauty, travel, health, family, luxury, and fashion areas; and magazines related to women and lifestyle. It also operates a digital marketplace that connects home service professionals with consumers for repairing, remodeling, cleaning, landscaping, maintenance, and enhancement services under the Angi Ads, Angi Leads, and Angi Services brands. In addition, the company operates websites that offer general search services and information, including Ask.com, a search site with a variety of fresh and contemporary content; Reference.com that offers content across select vertical categories; Consumersearch.com, which offers content designed to simplify the product research process; and Shopping.net, a vertical shopping search site that contains a mix of search services and/or content targeted to various user or segment demographics, as well as offers direct-to-consumer downloadable desktop applications. Further, it offers Care.com, an online destination for families to connect with caregivers for their children, aging parents, pets, and homes; develops and provides subscription mobile applications across the communication, language, weather, business, health, and lifestyle verticals; a technology driven staffing platform for flexible W-2 work under the Bluecrew name; a platform to connect healthcare professionals with job opportunities under the Vivian Health name; The Daily Beast, a website dedicated to news, commentary, culture, and entertainment that publishes original reporting and opinion; and production and producer services for feature films for sale and distribution through theatrical releases and video-on-demand services. The company was formerly known as IAC/InterActiveCorp. The company is headquartered in New York, New York.

About Locafy

Locafy Limited operates as a software-as-a-service company (SaaS) that specializes in search engine marketing in Australia, New Zealand, Europe, North America, and internationally. The company operates in three segments: Publishing, Direct Sales, and Reseller Sales. It focuses on commercializing its SaaS online publishing technology platform that comprises an integrated suite of solutions. The company also owns and operates several online directories and offers search engine optimization solutions, which include creation of proximity pages and proximity networks, local pages, and map pack booster. In addition, its platform publishes content to various devices that uses a web browser to display web content, as well as programmatically optimizes the published content for local search. The company offers its solutions directly to customers, as well as through digital agencies and search engine optimization freelancers. The company was formerly known as Moboom Limited and changed its name to Locafy Limited in January 2021. Locafy Limited was incorporated in 2009 and is based in Subiaco, Australia.