LegalZoom.com (NASDAQ:LZ) & Her Imports (OTCMKTS:HHER) Critical Comparison

Her Imports (OTCMKTS:HHER) and LegalZoom.com (NASDAQ:LZ) are both small-cap consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, dividends, institutional ownership, profitability and earnings.

Profitability

This table compares Her Imports and LegalZoom.com’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Her Imports	N/A	N/A	N/A
LegalZoom.com	3.15%	19.47%	7.13%

Institutional and Insider Ownership

82.0% of LegalZoom.com shares are owned by institutional investors. 1.0% of Her Imports shares are owned by company insiders. Comparatively, 10.5% of LegalZoom.com shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Her Imports has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, LegalZoom.com has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500.

Valuation & Earnings

This table compares Her Imports and LegalZoom.com’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Her Imports	N/A	N/A	N/A	N/A	N/A
LegalZoom.com	$669.01 million	2.42	$13.95 million	$0.11	78.09

LegalZoom.com has higher revenue and earnings than Her Imports.

Analyst Ratings

This is a breakdown of current recommendations for Her Imports and LegalZoom.com, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Her Imports	0	0	0	0	N/A
LegalZoom.com	1	1	4	0	2.50

LegalZoom.com has a consensus target price of $14.75, suggesting a potential upside of 71.71%. Given LegalZoom.com’s higher possible upside, analysts clearly believe LegalZoom.com is more favorable than Her Imports.

Summary

LegalZoom.com beats Her Imports on 9 of the 9 factors compared between the two stocks.

About Her Imports

Her Imports operates as a retailer of human hair extensions and related haircare and beauty products in the United States. It sells human hair products, including clip-ins and wigs under the Her Imports brand; haircare products, such as various shampoos and conditioners, and adhesives under the OSIworks brand; and beauty products and related accessories comprising silk bonnets, as well as styling tools under the Her Imports brand and makeup products under the Skin & Yang brand. The company also sells its products to consultation studios, as well as through its Website, herimports.com. As of December 31, 2018, it operated 16 retail locations. The company was formerly known as EZJR, Inc. and changed its name to Her Imports in January 2017. Her Imports was founded in 2011 and is headquartered in Las Vegas, Nevada.

About LegalZoom.com

LegalZoom.com, Inc., together with its subsidiaries, operates an online platform that supports the legal, compliance, and business management needs of small businesses and consumers in the United States. The company's platform offers business formation products, such as limited liability company, incorporation of C and S corporations, nonprofit formations, doing-business-as, corporate changes and filings, business licenses, legal forms, and beneficial ownership information reports; intellectual property products consisting of trademark and patent applications, and copyright registrations; and tax services, including business and personal tax preparations. It also provides consumer, estate planning, and other services comprising last will and testament, living will, living trust, power of attorney, and name change. In addition, the company offers subscriptions services, including registered agent, compliance, attorney advice, tax advice and preparation, eSignature, virtual mail and check deposit services, trademark monitoring, and estate planning bundle. The company was incorporated in 1999 and is headquartered in Glendale, California.