Head to Head Survey: LegalZoom.com (NASDAQ:LZ) & Computer Services (OTCMKTS:CSVI)

LegalZoom.com (NASDAQ:LZ) and Computer Services (OTCMKTS:CSVI) are both small-cap industrial products companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for LegalZoom.com and Computer Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LegalZoom.com	2	5	1	0	1.88
Computer Services	0	0	0	0	N/A

LegalZoom.com presently has a consensus price target of $11.21, suggesting a potential upside of 65.40%. Given LegalZoom.com’s higher possible upside, research analysts plainly believe LegalZoom.com is more favorable than Computer Services.

Profitability

This table compares LegalZoom.com and Computer Services’ net margins, return on equity and return on assets.

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

Insider and Institutional Ownership

82.0% of LegalZoom.com shares are held by institutional investors. 10.5% of LegalZoom.com shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares LegalZoom.com and Computer Services’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LegalZoom.com	$660.73 million	1.93	$13.95 million	$0.11	61.64
Computer Services	$316.65 million	5.04	$61.86 million	N/A	N/A

Computer Services has lower revenue, but higher earnings than LegalZoom.com.

Summary

LegalZoom.com beats Computer Services on 8 of the 10 factors compared between the two stocks.

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.

About Computer Services

Computer Services, Inc., together with its subsidiaries, provides core processing, digital banking, managed services, payments processing, print and electronic distribution, and regulatory compliance solutions to financial institutions and corporate entities in the United States. The company offers processing, maintenance, and support services; software licensing and installation services; and professional services, as well as sells equipment and supplies. It also provides integrated banking solutions, which include mobile and Internet banking; check imaging; cash management; branch and merchant capture; print and mail, and electronic document distribution services; corporate intranets; board portals; Web hosting; e-messaging; teller and platform services; ATM and debit card service and support; payments solutions; cybersecurity risk assessment; network management; and cloud-based managed services. In addition, the company offers compliance software and services for regulatory compliance, homeland security, anti-money laundering, anti-terrorism financing, and fraud prevention. It serves community and regional banks; multi-bank holding companies; and technology, logistics, and insurance organizations, as well as various other business enterprises. The company was incorporated in 1965 and is headquartered in Paducah, Kentucky.