Lucas GC (NASDAQ:LGCL) & Snap (NYSE:SNAP) Critical Comparison

Lucas GC (NASDAQ:LGCL) and Snap (NYSE:SNAP) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.

Earnings & Valuation

This table compares Lucas GC and Snap”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lucas GC	$207.60 million	0.46	$10.94 million	N/A	N/A
Snap	$4.61 billion	4.39	-$1.32 billion	($0.58)	-21.02

Lucas GC has higher earnings, but lower revenue than Snap.

Profitability

This table compares Lucas GC and Snap’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lucas GC	N/A	N/A	N/A
Snap	-18.49%	-35.60%	-10.42%

Insider & Institutional Ownership

47.5% of Snap shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for Lucas GC and Snap, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lucas GC	0	0	0	0	N/A
Snap	1	22	9	0	2.25

Snap has a consensus target price of $14.31, suggesting a potential upside of 17.43%. Given Snap’s higher possible upside, analysts plainly believe Snap is more favorable than Lucas GC.

Summary

Snap beats Lucas GC on 5 of the 9 factors compared between the two stocks.

About Lucas GC

Lucas GC Limited, through its subsidiaries, provides online agent-centric human capital management services based on platform-as-a-service (PaaS) in the People’s Republic of China. Its Star Career and Columbus platforms enables registered users to receive customized job recommendations and work as talent scouts to source suitable candidates for its corporate customers through their social network, as well as receive trainings and other value-added services. The company’s platform provides permanent and flexible employment recruitment services; outsourcing services primarily for technology-related projects to design, develop, and deliver the projects within budget and on time with acceptable quality; information technology services to generate sales leads for its corporate customers; and training services comprising career-related certification programs. In addition, it engages in the media and entertainment business, as well as provides management consulting services. Lucas GC Limited was founded in 2011 and is based in Beijing, China. Lucas GC Limited operates as a subsidiary of HTL Lucky Holding Limited.

About Snap

Snap Inc. operates as a technology company in North America, Europe, and internationally. The company offers Snapchat, a visual messaging application with various tabs, such as camera, visual messaging, snap map, stories, and spotlight that enable people to communicate visually through short videos and images. It also provides Spectacles, an eyewear product that connects with Snapchat and captures photos and video from a human perspective; and advertising products, including AR ads and Snap ads comprises a single image or video ads, collection ads, dynamic ads, story ads, and commercials. The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016. Snap Inc. was founded in 2010 and is headquartered in Santa Monica, California.