Contrasting Leafly (NASDAQ:LFLY) & Clear Secure (NYSE:YOU)

Clear Secure (NYSE:YOU) and Leafly (NASDAQ:LFLY) are both industrial products companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Institutional and Insider Ownership

73.8% of Clear Secure shares are owned by institutional investors. Comparatively, 15.6% of Leafly shares are owned by institutional investors. 37.8% of Clear Secure shares are owned by insiders. Comparatively, 7.6% of Leafly shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Clear Secure has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500. Comparatively, Leafly has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for Clear Secure and Leafly, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clear Secure	1	1	3	0	2.40
Leafly	0	0	2	0	3.00

Clear Secure currently has a consensus target price of $29.20, indicating a potential downside of 10.54%. Leafly has a consensus target price of $7.59, indicating a potential upside of 248.17%. Given Leafly’s stronger consensus rating and higher probable upside, analysts clearly believe Leafly is more favorable than Clear Secure.

Valuation & Earnings

This table compares Clear Secure and Leafly”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clear Secure	$697.15 million	6.78	$28.11 million	$0.56	58.29
Leafly	$38.10 million	0.14	-$9.50 million	($3.21)	-0.68

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

Profitability

This table compares Clear Secure and Leafly’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clear Secure	10.36%	35.33%	11.40%
Leafly	-16.61%	N/A	-29.22%

Summary

Clear Secure beats Leafly on 12 of the 14 factors compared between the two stocks.

About Clear Secure

Clear Secure, Inc. operates a secure identity platform under the CLEAR brand name primarily in the United States. Its secure identity platform is a multi-layered infrastructure consisting of front-end, including enrollment, verification, and linking, as well as back-end. The company also offers CLEAR Plus, a consumer aviation subscription service, which enables access to predictable entry lanes in airport security checkpoints, as well as access to broader network; and CLEAR mobile app, which is used to enroll new members and improve the experience for existing members. In addition, it provides RESERVE powered by CLEAR, a virtual queuing technology that provides users with the ability to book a dedicated time slot to go through security at the airport; CLEAR Verified, a B2B offering that extends secure identity platform to partners to create friction-free experiences for their customers; TSA PreCheck Enrollment Provided by CLEAR, as well as online renewal services; Atlas Certified, an automated solution to verify professional licenses and certification data across industries; and Sora ID that enables adding know your customer services to platform offerings, as well as virtual queuing technology that enables customers to manage lines. The company was founded in 2010 and is headquartered in New York, New York.

About Leafly

Leafly Holdings, Inc. owns and operates a platform to provide consumers with cannabis information and connects consumers to cannabis brands and licensed retailers. The company offers subscription-based marketplace listings, digital advertising solutions, and software as a service-based tools to cannabis retailers; and information, reviews, menus, and ordering and delivery options to its audience through its website and mobile applications. Leafly Holdings, Inc. was founded in 2010 and is headquartered in Seattle, Washington.