LivePerson (LPSN) vs. Its Peers Financial Contrast

LivePerson (NASDAQ:LPSN) is one of 959 publicly-traded companies in the “Software” industry, but how does it weigh in compared to its peers? We will compare LivePerson to related companies based on the strength of its valuation, profitability, risk, dividends, analyst recommendations, institutional ownership and earnings.

Profitability

This table compares LivePerson and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LivePerson	-51.89%	N/A	-8.39%
LivePerson Competitors	-596.15%	26.13%	-8.98%

Risk and Volatility

LivePerson has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, LivePerson’s peers have a beta of 1.33, meaning that their average stock price is 33% more volatile than the S&P 500.

Earnings and Valuation

This table compares LivePerson and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
LivePerson	$228.89 million	-$67.23 million	-0.23
LivePerson Competitors	$1.80 billion	$382.69 million	112.31

LivePerson’s peers have higher revenue and earnings than LivePerson. LivePerson is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

79.8% of LivePerson shares are owned by institutional investors. Comparatively, 41.5% of shares of all “Software” companies are owned by institutional investors. 2.0% of LivePerson shares are owned by company insiders. Comparatively, 19.9% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for LivePerson and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LivePerson	1	0	0	0	1.00
LivePerson Competitors	5852	21632	45028	1503	2.57

As a group, “Software” companies have a potential upside of 28.38%. Given LivePerson’s peers stronger consensus rating and higher possible upside, analysts plainly believe LivePerson has less favorable growth aspects than its peers.

Summary

LivePerson peers beat LivePerson on 9 of the 13 factors compared.

About LivePerson

LivePerson, Inc. develops cloud-based software that helps businesses communicate with customers through digital messaging and voice channels. Its platform supports customer service and sales conversations across channels such as web chat, SMS and social messaging. The company’s products include tools for managing customer conversations, automating interactions with conversational AI and analyzing engagement. These capabilities are designed to help businesses handle inquiries, assist human agents and coordinate customer interactions across channels.