WallStSmart

LegalZoom.com Inc (LZ)vsThomson Reuters Corporation Common Shares (TRI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Thomson Reuters Corporation Common Shares generates 888% more annual revenue ($7.83B vs $792.49M). TRI leads profitability with a 21.2% profit margin vs 2.1%. TRI trades at a lower P/E of 27.9x. TRI earns a higher WallStSmart Score of 63/100 (C+).

LZ

Hold

37

out of 100

Grade: F

Growth: 4.7Profit: 5.5Value: 5.0Quality: 4.5
Piotroski: 3/9Altman Z: -1.25

TRI

Buy

63

out of 100

Grade: C+

Growth: 6.7Profit: 7.5Value: 4.0Quality: 6.5
Piotroski: 5/9Altman Z: 2.63
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LZUndervalued (+27.4%)

Margin of Safety

+27.4%

Fair Value

$9.79

Current Price

$6.05

$3.74 discount

UndervaluedFair: $9.79Overvalued
TRISignificantly Overvalued (-47.1%)

Margin of Safety

-47.1%

Fair Value

$60.64

Current Price

$97.35

$36.71 premium

UndervaluedFair: $60.64Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LZ1 strengths · Avg: 9.0/10
Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

TRI4 strengths · Avg: 8.5/10
Profit MarginProfitability
21.2%9/10

Keeps 21 of every $100 in revenue as profit

Debt/EquityHealth
0.299/10

Conservative balance sheet, low leverage

Operating MarginProfitability
28.3%8/10

Strong operational efficiency at 28.3%

EPS GrowthGrowth
47.2%8/10

Earnings expanding 47.2% YoY

Areas to Watch

LZ4 concerns · Avg: 2.8/10
Market CapQuality
$1.03B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
2.1%3/10

2.1% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
66.9x2/10

Premium valuation, high expectations priced in

TRI2 concerns · Avg: 4.0/10
PEG RatioValuation
1.594/10

Expensive relative to growth rate

P/E RatioValuation
27.9x4/10

Moderate valuation

Comparative Analysis Report

WallStSmart Research

Bull Case : LZ

The strongest argument for LZ centers on Debt/Equity.

Bull Case : TRI

The strongest argument for TRI centers on Profit Margin, Debt/Equity, Operating Margin. Profitability is solid with margins at 21.2% and operating margin at 28.3%.

Bear Case : LZ

The primary concerns for LZ are Market Cap, Profit Margin, Piotroski F-Score. A P/E of 66.9x leaves little room for execution misses. Thin 2.1% margins leave little buffer for downturns.

Bear Case : TRI

The primary concerns for TRI are PEG Ratio, P/E Ratio.

Key Dynamics to Monitor

LZ profiles as a value stock while TRI is a mature play — different risk/reward profiles.

LZ carries more volatility with a beta of 1.26 — expect wider price swings.

TRI is growing revenue faster at 9.5% — sustainability is the question.

TRI generates stronger free cash flow (722M), providing more financial flexibility.

Bottom Line

TRI scores higher overall (63/100 vs 37/100), backed by strong 21.2% margins. LZ offers better value entry with a 27.4% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

LegalZoom.com Inc

INDUSTRIALS · SPECIALTY BUSINESS SERVICES · USA

LegalZoom.com, Inc. operates an online platform for legal and compliance solutions in the United States. The company is headquartered in Glendale, California.

Thomson Reuters Corporation Common Shares

INDUSTRIALS · SPECIALTY BUSINESS SERVICES · USA

Thomson Reuters Corporation provides business information services in the Americas, Europe, the Middle East, Africa, and Asia Pacific.

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