Locafy (NASDAQ:LCFY) & Taboola.com (NASDAQ:TBLA) Head-To-Head Review

Taboola.com (NASDAQ:TBLA) and Locafy (NASDAQ:LCFY) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Earnings & Valuation

This table compares Taboola.com and Locafy’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Taboola.com	$1.62 billion	0.58	-$82.04 million	($0.23)	-14.13
Locafy	$4.21 million	1.57	-$2.62 million	($1.87)	-2.77

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

Insider & Institutional Ownership

42.9% of Taboola.com shares are held by institutional investors. Comparatively, 0.0% of Locafy shares are held by institutional investors. 22.4% of Taboola.com shares are held by company insiders. Comparatively, 28.7% of Locafy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Taboola.com	-5.04%	-2.64%	-1.64%
Locafy	-66.21%	-82.35%	-45.02%

Analyst Recommendations

This is a summary of recent ratings for Taboola.com and Locafy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Taboola.com	0	0	4	0	3.00
Locafy	0	0	0	0	N/A

Taboola.com presently has a consensus target price of $5.56, suggesting a potential upside of 71.15%. Given Taboola.com’s higher possible upside, analysts plainly believe Taboola.com is more favorable than Locafy.

Volatility and Risk

Taboola.com has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, Locafy has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.

Summary

Taboola.com beats Locafy on 9 of the 13 factors compared between the two stocks.

About Taboola.com

Taboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United States, the United Kingdom, Germany, and internationally. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web to users. The company was incorporated in 2006 and 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.