Analyzing Lendway (LDWY) and The Competition

Lendway (NASDAQ:LDWY) is one of 30 public companies in the “Advertising” industry, but how does it compare to its rivals? We will compare Lendway to similar businesses based on the strength of its institutional ownership, profitability, analyst recommendations, dividends, earnings, risk and valuation.

Insider and Institutional Ownership

6.1% of Lendway shares are owned by institutional investors. Comparatively, 26.4% of shares of all “Advertising” companies are owned by institutional investors. 16.9% of Lendway shares are owned by company insiders. Comparatively, 21.6% of shares of all “Advertising” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Lendway and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lendway	0	0	0	0	N/A
Lendway Competitors	219	345	463	15	2.26

As a group, “Advertising” companies have a potential upside of 57.81%. Given Lendway’s rivals higher possible upside, analysts clearly believe Lendway has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Lendway and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lendway	$18.80 million	$10.05 million	4.32
Lendway Competitors	$1.20 billion	$268.20 million	2.58

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

Volatility and Risk

Lendway has a beta of 1.93, meaning that its stock price is 93% more volatile than the S&P 500. Comparatively, Lendway’s rivals have a beta of 0.92, meaning that their average stock price is 8% less volatile than the S&P 500.

Profitability

This table compares Lendway and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lendway	44.58%	-4.25%	-3.15%
Lendway Competitors	-53.81%	-76.18%	-18.69%

About Lendway

Lendway, Inc. provides in-store advertising solutions to consumer-packaged goods manufacturers, retailers, shopper marketing agencies, and brokerages in the United States. It offers in-store signage solutions, which provides point-of-purchase services, brand equity signs, tear pads, and display marketing solutions; display solutions, such as a range of fully customized temporary, semi-permanent, and permanent displays; merchandising solutions; and on-pack solutions, which include BoxTalk, coupons, recipes, and cross-promotions. The company also operates a non-bank lending marketplace. The company was formerly known as Insignia Systems, Inc. and changed its name to Lendway, Inc. in August 2023. The company was incorporated in 1990 and is headquartered in Minneapolis, Minnesota.