China Recycling Energy (NASDAQ:CREG) vs. Limelight Networks (NASDAQ:LLNW) Critical Survey

China Recycling Energy (NASDAQ:CREG) and Limelight Networks (NASDAQ:LLNW) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.

Insider and Institutional Ownership

2.8% of China Recycling Energy shares are owned by institutional investors. Comparatively, 76.2% of Limelight Networks shares are owned by institutional investors. 16.7% of China Recycling Energy shares are owned by insiders. Comparatively, 10.4% of Limelight Networks shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for China Recycling Energy and Limelight Networks, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Recycling Energy 0 0 0 0 N/A
Limelight Networks 0 2 1 0 2.33

Limelight Networks has a consensus price target of $3.85, indicating a potential upside of 21.07%. Given Limelight Networks’ higher possible upside, analysts clearly believe Limelight Networks is more favorable than China Recycling Energy.

Earnings & Valuation

This table compares China Recycling Energy and Limelight Networks’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Recycling Energy $4.89 million 1.45 -$66.00 million N/A N/A
Limelight Networks $195.67 million 1.90 $9.84 million ($0.02) -160.00

Limelight Networks has higher revenue and earnings than China Recycling Energy.

Profitability

This table compares China Recycling Energy and Limelight Networks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Recycling Energy N/A -42.54% -22.53%
Limelight Networks -11.63% -13.07% -10.68%

Risk & Volatility

China Recycling Energy has a beta of 2.36, meaning that its stock price is 136% more volatile than the S&P 500. Comparatively, Limelight Networks has a beta of 2.12, meaning that its stock price is 112% more volatile than the S&P 500.

Summary

Limelight Networks beats China Recycling Energy on 8 of the 11 factors compared between the two stocks.

About China Recycling Energy

China Recycling Energy Corporation engages in the recycling energy business in China. It designs, finances, constructs, operates, and transfers waste energy recycling projects to mid- to large-size enterprises involved in high energy-consuming businesses. The company offers waste pressure-to-energy solutions, including the blast furnace top gas recovery turbine unit, a system that utilizes high pressure gas emitted from the blast furnace top to drive turbine units and generates electricity; and waste heat-to-energy solutions, such as heat power generation projects for applications in cement, steel, coking coal, and nonferrous metal industries, which collect the residual heat from various manufacturing processes. It also provides waste gas-to-energy solutions comprising the waste gas power generation system that utilizes flammable waste gas from coal mining, petroleum exploitation, refinery processing, or other sources as a fuel source to generate electricity; and the combined cycle power plant, which employs power generating cycle to utilize the waste gas that generates electricity by burning the flammable waste gas in a gas turbine, as well as uses the waste heat from burning the gas to make steam to generate additional electricity through a steam turbine. In addition, the company offers biomass power generation systems (BMPG); and waste heat power generation (WHPG) systems; and project investment, investment management, economic information consulting, technical, and financial leasing services, as well as leases energy saving systems and equipment. As of December 31, 2017, it had five recycling WHPG systems and four BMPG systems. The company was formerly known as China Digital Wireless, Inc. and changed its name to China Recycling Energy Corporation in March 2007. China Recycling Energy Corporation was incorporated in 1980 and is headquartered in Xi'an, China.

About Limelight Networks

Limelight Networks, Inc. provides content delivery and related services and solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers services and solutions for businesses to deliver their digital content across Internet, mobile, social, and other digital initiatives. It operates edge services platform that provides content delivery services, video content management services, performance services for Website and Web application acceleration and security, professional services, cloud storage, and edge computing services, as well as sells equipment. The company also offers professional services and other infrastructure services, such as transit and rack space services. It serves media companies operating in the television, music, radio, newspaper, magazine, movie, gaming, software, and social media industries, as well as enterprises, technology companies, and government entities conducting business online. Limelight Networks, Inc. was founded in 2001 and is headquartered in Tempe, Arizona.

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