Contrasting Life360 (NASDAQ:LIF) and EverCommerce (NASDAQ:EVCM)

Life360 (NASDAQ:LIF) and EverCommerce (NASDAQ:EVCM) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.

Valuation and Earnings

This table compares Life360 and EverCommerce”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Life360	$489.48 million	7.17	$150.83 million	$1.71	25.20
EverCommerce	$588.91 million	2.68	$17.60 million	$0.18	49.67

Life360 has higher earnings, but lower revenue than EverCommerce. Life360 is trading at a lower price-to-earnings ratio than EverCommerce, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Life360 and EverCommerce, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Life360	0	5	5	1	2.64
EverCommerce	2	5	3	0	2.10

Life360 currently has a consensus target price of $59.94, suggesting a potential upside of 39.08%. EverCommerce has a consensus target price of $11.00, suggesting a potential upside of 23.04%. Given Life360’s stronger consensus rating and higher possible upside, equities analysts plainly believe Life360 is more favorable than EverCommerce.

Profitability

This table compares Life360 and EverCommerce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Life360	25.73%	5.66%	3.17%
EverCommerce	5.69%	3.95%	2.06%

Insider and Institutional Ownership

20.0% of Life360 shares are held by institutional investors. Comparatively, 97.9% of EverCommerce shares are held by institutional investors. 6.8% of Life360 shares are held by company insiders. Comparatively, 10.1% of EverCommerce shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Life360 has a beta of 2.27, indicating that its stock price is 127% more volatile than the S&P 500. Comparatively, EverCommerce has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.

Summary

Life360 beats EverCommerce on 11 of the 15 factors compared between the two stocks.

About Life360

Life360 Inc. is a family connection and safety company. Its business category includes mobile app and Tile tracking devices with a range of services, including location sharing, safe driver reports and crash detection with emergency dispatch. Life360 Inc. is based in SAN FRANCISCO.

About EverCommerce

EverCommerce Inc., together with its subsidiaries, provides integrated software-as-a-service solutions for service-based small and medium sized businesses in the United States and internationally. The company’s solutions include business management software that offers route-based dispatching, medical practice management, and gym member management solutions; billing and payment solutions comprising e-invoicing, mobile payments, and integrated payment processing; customer experience solution, which include reputation management and messaging solutions; and marketing technology solutions that cover websites, hosting, and digital lead generation. It also provides EverPro suite of solutions in home services; EverHealth suite of solutions within health services; and EverWell suite of solutions in fitness and wellness services. In addition, the company offers professional services, such as implementation, configuration, installation, or training services. It serves home service professionals, including home improvement contractors and home maintenance technicians; physician practices and therapists in the health services industry; and personal trainers and salon owners in the fitness and wellness sectors. The company was formerly known as PaySimple Holdings, Inc. and changed its name to EverCommerce Inc. in December 2020. EverCommerce Inc. was incorporated in 2016 and is headquartered in Denver, Colorado.