WallStSmart

LegalZoom.com Inc (LZ)vsUL Solutions Inc. (ULS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

UL Solutions Inc. generates 298% more annual revenue ($3.11B vs $779.71M). ULS leads profitability with a 11.3% profit margin vs 1.5%. ULS trades at a lower P/E of 57.3x. ULS earns a higher WallStSmart Score of 62/100 (C+).

LZ

Hold

36

out of 100

Grade: F

Growth: 4.7Profit: 4.0Value: 5.0Quality: 4.5
Piotroski: 3/9Altman Z: -1.25

ULS

Buy

62

out of 100

Grade: C+

Growth: 7.3Profit: 8.0Value: 3.7Quality: 6.5
Piotroski: 5/9Altman Z: 2.41
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LZUndervalued (+28.9%)

Margin of Safety

+28.9%

Fair Value

$10.00

Current Price

$5.74

$4.26 discount

UndervaluedFair: $10.00Overvalued

Intrinsic value data unavailable for ULS.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LZ1 strengths · Avg: 9.0/10
Debt/EquityHealth
0.109/10

Conservative balance sheet, low leverage

ULS2 strengths · Avg: 8.5/10
Return on EquityProfitability
26.1%9/10

Every $100 of equity generates 26 in profit

EPS GrowthGrowth
36.4%8/10

Earnings expanding 36.4% YoY

Areas to Watch

LZ4 concerns · Avg: 3.0/10
Market CapQuality
$1.01B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.8%3/10

ROE of 7.8% — below average capital efficiency

Profit MarginProfitability
1.5%3/10

1.5% margin — thin

Operating MarginProfitability
1.9%3/10

Operating margin of 1.9%

ULS3 concerns · Avg: 3.3/10
PEG RatioValuation
2.244/10

Expensive relative to growth rate

Price/BookValuation
14.8x4/10

Trading at 14.8x book value

P/E RatioValuation
57.3x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : LZ

The strongest argument for LZ centers on Debt/Equity. Revenue growth of 12.9% demonstrates continued momentum.

Bull Case : ULS

The strongest argument for ULS centers on Return on Equity, EPS Growth.

Bear Case : LZ

The primary concerns for LZ are Market Cap, Return on Equity, Profit Margin. A P/E of 98.5x leaves little room for execution misses. Thin 1.5% margins leave little buffer for downturns.

Bear Case : ULS

The primary concerns for ULS are PEG Ratio, Price/Book, P/E Ratio. A P/E of 57.3x leaves little room for execution misses.

Key Dynamics to Monitor

LZ carries more volatility with a beta of 1.31 — expect wider price swings.

LZ is growing revenue faster at 12.9% — sustainability is the question.

ULS generates stronger free cash flow (150M), providing more financial flexibility.

Monitor SPECIALTY BUSINESS SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ULS scores higher overall (62/100 vs 36/100). LZ offers better value entry with a 28.9% 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.

UL Solutions Inc.

INDUSTRIALS · SPECIALTY BUSINESS SERVICES · USA

UL Solutions Inc. provides safety science services globally. The company is headquartered in Northbrook, Illinois with additional offices in North America, Asia Pacific, Africa, Europe, Latin America, and Middle East.

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