Posted by Defense World Staff on Mar 11th, 2024
Lyft (NASDAQ:LYFT – Get Free Report) and Liquidity Services (NASDAQ:LQDT – Get Free Report) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.
Profitability
This table compares Lyft and Liquidity Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lyft | -7.73% | -54.80% | -5.41% |
| Liquidity Services | 6.03% | 17.62% | 9.85% |
Analyst Ratings
This is a breakdown of current ratings and price targets for Lyft and Liquidity Services, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lyft | 1 | 18 | 5 | 0 | 2.17 |
| Liquidity Services | 0 | 0 | 1 | 0 | 3.00 |
Lyft currently has a consensus target price of $14.19, indicating a potential downside of 22.52%. Liquidity Services has a consensus target price of $27.00, indicating a potential upside of 51.94%. Given Liquidity Services’ stronger consensus rating and higher probable upside, analysts clearly believe Liquidity Services is more favorable than Lyft.
Insider & Institutional Ownership
71.6% of Lyft shares are owned by institutional investors. Comparatively, 70.2% of Liquidity Services shares are owned by institutional investors. 3.2% of Lyft shares are owned by insiders. Comparatively, 29.8% of Liquidity Services shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Lyft and Liquidity Services’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lyft | $4.40 billion | 1.66 | -$340.32 million | ($0.89) | -20.57 |
| Liquidity Services | $314.46 million | 1.74 | $20.98 million | $0.60 | 29.62 |
Liquidity Services has lower revenue, but higher earnings than Lyft. Lyft is trading at a lower price-to-earnings ratio than Liquidity Services, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Lyft has a beta of 1.95, meaning that its stock price is 95% more volatile than the S&P 500. Comparatively, Liquidity Services has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.
Summary
Liquidity Services beats Lyft on 10 of the 14 factors compared between the two stocks.
About Lyft
Lyft, Inc. operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. It operates multimodal transportation networks that offer access to various transportation options through the Lyft platform and mobile-based applications. The company's platform provides a ridesharing marketplace, which connects drivers with riders; Express Drive, a car rental program for drivers; and a network of shared bikes and scooters in various cities to address the needs of riders for short trips. It also offers centralized tools and enterprise transportation solutions, such as concierge transportation solutions for organizations; Lyft Pink subscription plans; Lyft Pass commuter programs; first-mile and last-mile services; and university safe rides programs. The company was formerly known as Zimride, Inc. and changed its name to Lyft, Inc. in April 2013. Lyft, Inc. was incorporated in 2007 and is headquartered in San Francisco, California.
About Liquidity Services
Liquidity Services, Inc. provides e-commerce marketplaces, self-directed auction listing tools, and value-added services in the United States and internationally. The company operates through four segments: GovDeals, Retail Supply Chain Group (RSCG), Capital Assets Group (CAG), and Machinio. Its marketplaces include liquidation.com that enable corporations to sell surplus and salvage consumer goods and retail capital assets; GovDeals marketplace, which provides self-directed service solutions in which sellers list their own assets that enables local and state government entities, and commercial businesses located in the United States and Canada to sell surplus and salvage assets; and AllSurplus, a centralized marketplace that connects global buyer base with assets from across the network of marketplaces in a single destination. The company also offers a suite of services, including surplus management, asset valuation, asset sales, marketing, returns management, asset recovery, and ecommerce services. In addition, it operates a global search engine platform for listing used equipment for sale in the construction, machine tool, transportation, printing, and agriculture sectors. The company offers products from industry verticals, such as consumer electronics, general merchandise, apparel, scientific equipment, aerospace parts and equipment, technology hardware, real estate, energy equipment, industrial capital assets, heavy equipment, fleet and transportation equipment, and specialty equipment. The company was incorporated in 1999 and is headquartered in Bethesda, Maryland.
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