Next Technology (NASDAQ:NXTT – Get Free Report) and LegalZoom.com (NASDAQ:LZ – Get Free Report) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.
Insider & Institutional Ownership
2.7% of Next Technology shares are held by institutional investors. Comparatively, 82.0% of LegalZoom.com shares are held by institutional investors. 37.5% of Next Technology shares are held by insiders. Comparatively, 10.5% of LegalZoom.com shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Next Technology and LegalZoom.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Next Technology | N/A | 68.67% | 63.83% |
| LegalZoom.com | 3.15% | 19.47% | 7.13% |
Earnings & Valuation
This table compares Next Technology and LegalZoom.com’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Next Technology | $2.63 million | 5.18 | -$9.92 million | N/A | N/A |
| LegalZoom.com | $669.01 million | 1.73 | $13.95 million | $0.11 | 55.91 |
LegalZoom.com has higher revenue and earnings than Next Technology.
Volatility and Risk
Next Technology has a beta of 2.14, indicating that its share price is 114% more volatile than the S&P 500. Comparatively, LegalZoom.com has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Next Technology and LegalZoom.com, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Next Technology | 0 | 0 | 0 | 0 | N/A |
| LegalZoom.com | 2 | 5 | 1 | 0 | 1.88 |
LegalZoom.com has a consensus price target of $11.21, suggesting a potential upside of 82.35%. Given LegalZoom.com’s higher possible upside, analysts plainly believe LegalZoom.com is more favorable than Next Technology.
Summary
LegalZoom.com beats Next Technology on 6 of the 11 factors compared between the two stocks.
About Next Technology
Next Technology Holding Inc. provides technical services and solutions through its social e-commerce platform primarily in Mainland China. It offers YCloud, a micro-business cloud intelligent internationalization system that conducts multi-channel data analysis through the learning of big data and social recommendation relationships, as well as provides users with AI fission and management systems, and supply chain systems. The company’s YCloud system also provides micro-business owners with various payment methods, such as Alipay, WeChat, and UnionPay. In addition, it offers chatGPT technical services; and technical system support, software development, and services. The company serves individual and corporate users in the micro business industry. It also has operations in Hong Kong and Singapore. The company was formerly known as WeTrade Group, Inc. and changed its name to Next Technology Holding Inc in April 2024. Next Technology Holding Inc. was incorporated in 2019 and is headquartered in Beijing, the People Republic of China.
About LegalZoom.com
LegalZoom.com, Inc., together with its subsidiaries, operates an online platform that supports the legal, compliance, and business management needs of small businesses and consumers in the United States. The company’s platform offers business formation products, such as limited liability company, incorporation of C and S corporations, nonprofit formations, doing-business-as, corporate changes and filings, business licenses, legal forms, and beneficial ownership information reports; intellectual property products consisting of trademark and patent applications, and copyright registrations; and tax services, including business and personal tax preparations. It also provides consumer, estate planning, and other services comprising last will and testament, living will, living trust, power of attorney, and name change. In addition, the company offers subscriptions services, including registered agent, compliance, attorney advice, tax advice and preparation, eSignature, virtual mail and check deposit services, trademark monitoring, and estate planning bundle. The company was incorporated in 1999 and is headquartered in Glendale, California.
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