Financial Comparison: LivePerson (NASDAQ:LPSN) and Adeia (NASDAQ:ADEA)

LivePerson (NASDAQ:LPSN) and Adeia (NASDAQ:ADEA) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for LivePerson and Adeia, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LivePerson	1	0	0	0	1.00
Adeia	0	2	4	0	2.67

Adeia has a consensus price target of $37.60, indicating a potential upside of 77.27%. Given Adeia’s stronger consensus rating and higher possible upside, analysts clearly believe Adeia is more favorable than LivePerson.

Valuation and Earnings

This table compares LivePerson and Adeia”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LivePerson	$228.89 million	0.17	-$67.23 million	($13.74)	-0.23
Adeia	$443.39 million	5.28	$111.07 million	$1.08	19.64

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

Insider & Institutional Ownership

79.8% of LivePerson shares are held by institutional investors. Comparatively, 97.4% of Adeia shares are held by institutional investors. 2.0% of LivePerson shares are held by company insiders. Comparatively, 2.0% of Adeia shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares LivePerson and Adeia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LivePerson	-51.89%	N/A	-8.39%
Adeia	26.05%	39.26%	17.50%

Volatility & Risk

LivePerson has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, Adeia has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Summary

Adeia beats LivePerson on 12 of the 13 factors compared between the two stocks.

About LivePerson

LivePerson, Inc. engages in conversational artificial intelligence. It enables brands to leverage the Conversational Cloud's intelligence engine to connect with consumers through an integrated suite of mobile and online business messaging technologies. The company offers the Conversational Cloud, an enterprise-class digital customer conversation platform, which enables businesses and consumers to connect through conversational channels, such as voice, in-app, and mobile messaging. It also provides professional services; LivePerson's Conversational AI, including conversation builder, manager, and intelligence, and intent manager. In addition, it provides Voice AI, conversational intelligence and insights, and integration services. The company sells its products to Fortune 500 companies, Internet businesses, online merchants, automotive dealers, educational institution, public sector, and not-for-profit organizations. It operates in the United States, Canada, Latin America, South America, Europe, the Middle East, Africa, the United Kingdom, and the Asia-Pacific. LivePerson, Inc. was incorporated in 1995 and is headquartered in New York, New York.

About Adeia

Adeia Inc., together with its subsidiaries, operates as a media and semiconductor intellectual property licensing company in the United States, Canada, Asia, Europe, the Middle East, and internationally. The company licenses its patent portfolios across various markets, including multichannel video programming distributors comprising cable, satellite, and telecommunications television providers that aggregate and distribute linear content over networks, as well as television providers that aggregate and stream linear content over broadband networks; over-the-top video service providers and social media companies, such as subscription video-on-demand and advertising-supported streaming service providers, as well as content providers, networks, and media companies. It also licenses consumer electronics manufacturers, which includes producers of smart televisions, streaming media devices, video game consoles, mobile devices, content storage devices, and other connected media devices; semiconductors, including providers of sensors, radio frequency components, memory, and logic devices; and social media companies that allow users to stream and upload user-generated content. The company licenses its innovations under the Adeia brand name. Adeia Inc. was formerly known as Xperi Corporation and changed its name to Adeia Inc. in December 2019. The company was incorporated in 2019 and is headquartered in San Jose, California.