Liquidity Services (NASDAQ:LQDT – Get Rating) and Edgio (NASDAQ:EGIO – Get Rating) are both small-cap business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.
Insider and Institutional Ownership
65.4% of Liquidity Services shares are owned by institutional investors. Comparatively, 35.5% of Edgio shares are owned by institutional investors. 30.4% of Liquidity Services shares are owned by company insiders. Comparatively, 10.2% of Edgio shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
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Risk & Volatility
Liquidity Services has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, Edgio has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations for Liquidity Services and Edgio, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
| Liquidity Services | 0 | 0 | 1 | 0 | 3.00 |
| Edgio | 0 | 3 | 0 | 1 | 2.50 |
Liquidity Services currently has a consensus price target of $24.00, indicating a potential upside of 61.51%. Edgio has a consensus price target of $2.95, indicating a potential upside of 68.57%. Given Edgio's higher probable upside, analysts clearly believe Edgio is more favorable than Liquidity Services.
Profitability
This table compares Liquidity Services and Edgio's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
| Liquidity Services | 14.40% | 17.84% | 8.95% |
| Edgio | -27.17% | -16.61% | -8.55% |
Valuation and Earnings
This table compares Liquidity Services and Edgio's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
| Liquidity Services | $280.05 million | 1.68 | $40.32 million | $1.20 | 12.38 |
| Edgio | $217.63 million | 1.78 | -$54.76 million | ($0.50) | -3.50 |
Liquidity Services has higher revenue and earnings than Edgio. Edgio is trading at a lower price-to-earnings ratio than Liquidity Services, indicating that it is currently the more affordable of the two stocks.
Summary
Liquidity Services beats Edgio on 12 of the 15 factors compared between the two stocks.
About Liquidity Services
(Get Rating)
Liquidity Services, Inc. engages in the provision of e-commerce solutions to manage, value, and sell inventory and equipment for business and government clients. It operates through the following business segments: GovDeals, Capital Assets Group (CAG), Retail Supply Chain Group (RSCG), and Machinio. The GovDeals segment provides self-directed service solutions that enable local and state government entities including city, county, and state agencies to sell surplus and salvage assets through the firm's GovDeals marketplace. The CAG segment offers managed and self-directed service solutions to sellers and consists of marketplaces that enable commercial businesses to sell surplus and idle assets. CAG also offers a suite of services that includes surplus management, asset valuation, asset sales, and marketing. The RSCG segment consists of marketplaces that enable corporations located in the U.S. and Canada to sell surplus and salvage consumer goods and retail capital assets. Its services also include returns management, asset recovery, and e-commerce services. The Machinio segment operates a global search engine platform for listing used equipment for sale in the construction, machine
About Edgio
(Get Rating)
Edgio, Inc. engages in the provision of content delivery network services. Its products include digital content and video delivery, cloud security, edge computing, origin storage and support services. The firm's solutions include realtime streaming, file distribution, live video and video on demand. The company was founded by Michael M. Gordon, Allan M. Kalpan, Nathan F. Raciborski and William H. Rinehart in June 2001 and is headquartered in Phoenix, AZ.
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