Head-To-Head Analysis: Exzeo Group (NYSE:XZO) versus Locafy (NASDAQ:LCFY)

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

Profitability

This table compares Exzeo Group and Locafy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Exzeo Group	39.14%	38.77%	26.80%
Locafy	N/A	N/A	N/A

Earnings & Valuation

This table compares Exzeo Group and Locafy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Exzeo Group	$216.98 million	6.85	$82.75 million	$0.98	16.83
Locafy	$3.94 million	1.45	-$2.79 million	($0.89)	-2.86

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Exzeo Group and Locafy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Exzeo Group	1	1	3	0	2.40
Locafy	1	0	0	0	1.00

Exzeo Group currently has a consensus target price of $26.00, suggesting a potential upside of 57.62%. Given Exzeo Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe Exzeo Group is more favorable than Locafy.

Insider and Institutional Ownership

0.0% of Locafy shares are owned by institutional investors. 4.0% of Exzeo Group shares are owned by insiders. Comparatively, 28.7% of Locafy shares are owned 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.

Summary

Exzeo Group beats Locafy on 11 of the 13 factors compared between the two stocks.

About Exzeo Group

Exzeo provides turnkey insurance technology and operations solutions to insurance carriers and their agents based on a proprietary platform of purpose-built software and data analytics applications that are specifically designed for the property and casualty, or P&C, insurance ecosystem. Exzeo’s Insurance-as-a-Service (IaaS) platform, which we refer to as the “Exzeo Platform,” currently includes nine highly configurable software and data analytics applications that are purpose-built to serve insurance companies and other customers in the insurance value chain. Through the Exzeo Platform, Exzeo provides technology-based solutions and services for all operational and administrative activities and functions needed by P&C insurance carriers and their agents, including quoting and underwriting, policy management, claims processing management, data reporting, and financial reporting. As a result, the Exzeo Platform streamlines and automates the interaction between insurance carriers and their policyholders. Exzeo was established in 2012 as the technology and innovation division of HCI Group, Inc., or HCI, a leading underwriter of homeowners insurance in Florida and 12 other states. Exzeo’s initial customers are insurance carriers or their managing general agent that are owned or managed by HCI and its subsidiaries, and Exzeo has derived substantially all of its revenues to date from such customers. In addition to working with existing customers to expand their business, Exzeo intends to develop new customer partnerships with additional carriers and their agents by introducing them to the advantage of our technology. Exzeo was founded with a clear mission: to develop a platform that enhances underwriting margins, reduces operating expenses, enables rapid expansion across both geographic markets and product lines, and delivers a streamlined, user-friendly experience for both carriers and policyholders. Exzeo’s data-centric technology and mission inspired its name, which is derived from the combination of three words that describe the “Big Data” it collects and utilizes in its products and services: Exabyte (a million trillion – 1018– bytes), Zettabyte (1021 bytes) and Yottabyte (1024 bytes). Exzeo generates revenue from underwriting and management services, claim services, and other technology services that are provided through and powered by the Exzeo Platform. Exzeo provides its solutions and technologies to customers under contracts with a variable fee structure that is typically based on a percentage of premium managed through the Exzeo Platform. Exzeo believes that this fee structure is beneficial to customers because it is designed to allow customers to scale while optimizing for operational efficiencies and without significant up-front technology expenditures. We currently hold insurance agency or managing general agent licenses, as appropriate, in 29 states. Through the Exzeo Platform, we currently provide services in the following 13 states in which our customers have operations: Florida, Connecticut, Georgia, Massachusetts, Montana, North Carolina, New Jersey, New Mexico, Nevada, Rhode Island, South Carolina, South Dakota, and Utah. We intend to expand our operations (and obtain additional licenses as needed) in the 21 remaining states based upon growth plans of our existing customers or the existing geographies and growth plans of new customers with which we engage. Exzeo Group, Inc. is the registrant and the issuer of the common stock being sold in this offering. Our corporate headquarters is located in Tampa, FL.

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.