Redfin Corporation (NASDAQ:RDFN) and Limelight Networks, Inc. (NASDAQ:LLNW) are both Technology companies that recently hit new highs. The recent price action of these companies has left many investors wondering what actions to take. To determine if one is a better investment than the other, we will compare the two names across various metrics, including growth, profitability, risk, return, dividends, and valuation.
Redfin Corporation (NASDAQ:RDFN) operates in the Internet Information Providers segment of the Technology sector. RDFN has a net profit margin of -80.70% and is less profitable than the average company in the Internet Information Providers industry. Company’s return on equity, which is really just the product of the company’s profit margin, asset turnover, and financial leverage ratios, is 66.30%, which is better than the Internet Information Providers industry average ROE.
Stock’s free cash flow yield, which represents the amount of cash available to investors before dividends, expressed as a percentage of the stock price, is 0.55. The average investment recommendation for RDFN, taken from a group of Wall Street Analysts, is 2.60, or a hold.
Over the past three months, Redfin Corporation insiders have been net buyers, dumping a net of 0 shares. This implies that insiders have been feeling relatively bearish about the outlook for RDFN. Limelight Networks, Inc. (NASDAQ:LLNW) operates in the Internet Information Providers segment of the Technology sector. LLNW has increased sales at a -0.40% CAGR over the past five years, and is considered a low growth stock. The company has a net profit margin of -5.90% and is less profitable than the average Internet Information Providers player. LLNW’s asset turnover ratio is 0.88 and the company has financial leverage of 0.42. LLNW’s return on equity of -7.60% is worse than the Internet Information Providers industry average.
The average analyst recommendation for LLNW is 2.20, or a buy.
Limelight Networks, Inc. insiders have bought a net of 332,692 shares during the past three months, which implies that the company’s top executives have been feeling bullish about the stock’s outlook. Finally, LLNW’s beta of 2.57 indicates that the stock has an below average level of market risk.
Redfin Corporation (NASDAQ:RDFN) scores higher than Limelight Networks, Inc. (NASDAQ:LLNW) on 5 of the 13 measures compared between the two companies. RDFN has the better fundamentals, scoring higher on growth, leverage and return metrics.