Comparing Moneygram International (MGI) and Limelight Networks (LLNW)

Moneygram International (NASDAQ:MGI) and Limelight Networks (NASDAQ:LLNW) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of current ratings for Moneygram International and Limelight Networks, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Moneygram International 1 1 0 0 1.50
Limelight Networks 0 0 5 0 3.00

Moneygram International currently has a consensus price target of $6.50, suggesting a potential upside of 42.23%. Limelight Networks has a consensus price target of $6.30, suggesting a potential upside of 30.71%. Given Moneygram International’s higher probable upside, equities analysts plainly believe Moneygram International is more favorable than Limelight Networks.

Volatility & Risk

Moneygram International has a beta of 1.98, indicating that its share price is 98% more volatile than the S&P 500. Comparatively, Limelight Networks has a beta of 2.33, indicating that its share price is 133% more volatile than the S&P 500.

Profitability

This table compares Moneygram International and Limelight Networks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Moneygram International -2.27% -8.32% 0.74%
Limelight Networks 6.43% 1.99% 1.50%

Insider & Institutional Ownership

86.1% of Moneygram International shares are held by institutional investors. Comparatively, 72.8% of Limelight Networks shares are held by institutional investors. 45.4% of Moneygram International shares are held by company insiders. Comparatively, 10.6% of Limelight Networks shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Moneygram International and Limelight Networks’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Moneygram International $1.60 billion 0.16 -$29.80 million $0.88 5.19
Limelight Networks $184.36 million 2.94 -$7.63 million ($0.02) -241.00

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

Summary

Limelight Networks beats Moneygram International on 8 of the 14 factors compared between the two stocks.

About Moneygram International

MoneyGram International, Inc., together with its subsidiaries, provides money transfer services in the United States and internationally. The company operates through two segments, Global Funds Transfer and Financial Paper Products. The Global Funds Transfer segment offers money transfer services and bill payment services primarily to unbanked and underbanked consumers. The Financial Paper Products segment provides money orders to consumers through its agents and financial institutions; and official check outsourcing services for financial institutions. This segment sells its money orders under the MoneyGram brand and on a private label or co-branded basis with retail and financial institution. The company also offers digital solutions, such as moneygram.com, mobile solutions, account deposit, and kiosk-based services. MoneyGram International, Inc. was founded in 1926 and is based in Dallas, Texas.

About Limelight Networks

Limelight Networks, Inc. provides content delivery and related services and solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers services and solutions for businesses to deliver their digital content across Internet, mobile, and social channels. It provides Orchestrate Platform, a suite of integrated services comprising content delivery, video content management, Website and Web application acceleration, Website and content security, and cloud storage services. The company also offers professional services and other infrastructure services, such as transit and rack space services. It serves media companies operating in the television, music, radio, newspaper, magazine, movie, game, software, and social media industries, as well as enterprises, technology companies, and government entities conducting business online. Limelight Networks, Inc. was founded in 2001 and is headquartered in Tempe, Arizona.

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