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LZ vs TRI
Which Stock Would AI Choose? LegalZoom.com, Inc. (LZ) vs. Thomson Reuters Corporation (TRI) Stock Comparison
Key Takeaways
- LZ is a consumer- and small-business-focused online legal platform, while TRI is a diversified global content and technology company serving professionals.
- LegalZoom has faced meaningful downward pressure on its stock after cutting full-year revenue guidance and citing shifts in search-engine traffic, whereas Thomson Reuters has maintained steady organic growth.
- Thomson Reuters operates at a significantly larger scale and higher adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin than LegalZoom.
- Both companies are repositioning around artificial intelligence, but TRI frames AI as a reinforcing moat, while LZ faces both opportunity and competitive disruption risk.
- Relative performance diverged sharply: LZ has declined sharply over the past year, while TRI has shown resilience in recurring revenue despite recent choppiness.
Introduction
Investors weighing the legal and information-services landscape often encounter two very different business models under the same broad theme. LZ, or LegalZoom.com, Inc., targets individuals and small businesses with affordable online legal formation and compliance tools. TRI, or Thomson Reuters Corporation, serves law firms, tax professionals, and corporations with premium software, research, and data. This stock comparison is relevant to traders assessing relative performance and to longer-term investors evaluating market positioning, growth durability, and how each company navigates the rise of generative AI.
LZ Overview and Recent Performance
LegalZoom.com, Inc. (LZ) is a leading online platform for legal services, combining technology with access to attorneys to support business formation, compliance, estate planning, and ongoing legal needs. In recent market activity, the stock has experienced considerable volatility. Shares have declined sharply over the past year, falling well below prior highs and underperforming the broader market by a wide margin.
A key catalyst emerged in recent weeks when the company reported quarterly results that were broadly in line with consensus but accompanied by a cut to full-year revenue guidance. Management attributed the softer outlook to abrupt changes in search-engine algorithms that reduced organic traffic, along with a more cautious view of customer acquisition. While subscription revenue continued to grow at a double-digit pace and adjusted EBITDA margin expanded, declining transaction volume and shrinking subscription units weighed on sentiment. Analysts subsequently lowered price targets and ratings, reflecting concerns about customer-acquisition costs and competitive disruption in a digital-first legal environment.
TRI Overview and Recent Performance
Thomson Reuters Corporation (TRI) is a global content and technology company serving legal, tax, audit, accounting, compliance, government, and media markets. Its core "Big 3" segments — Legal Professionals, Corporates, and Tax, Audit & Accounting Professionals — generate the vast majority of revenue and reported organic revenue growth of roughly 9% in the most recent quarter, supported by products such as Westlaw and CoCounsel.
Recent performance reflects a company balancing steady growth with strategic portfolio simplification. The company increased its annualized dividend for the 33rd consecutive year, completed a substantial return of capital to shareholders, and sold a majority stake in its Global Print business to a private-equity partner, reporting it as a discontinued operation. Despite this operational consistency, the stock has been choppier in recent months, with year-to-date declines contrasting against a stronger multi-month rebound. Sentiment remains focused on whether the company can defend its premium positioning against fast-moving AI-native competitors while sustaining recurring subscription revenue growth.
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Head-to-Head Comparison
The two companies differ most sharply in scale, business model, and margin profile. Thomson Reuters generates billions in quarterly revenue with an adjusted EBITDA margin above 40%, while LegalZoom operates at a fraction of that scale with a much smaller margin. TRI's revenue is dominated by recurring subscriptions embedded in professional workflows, creating high switching costs; LZ combines transaction-based services with a growing subscription base, exposing it more directly to consumer acquisition dynamics.
Growth drivers also diverge. TRI leans on proprietary data, workflow integration, and "fiduciary-grade" AI tools sold into established professional markets. LZ is pursuing a mix shift toward higher-value subscriptions and partnerships, but faces pressure from search-engine changes and AI-driven competition for customer acquisition. Risk factors are asymmetric: LZ contends with traffic dependence and subscriber churn, while TRI faces competitive threats from AI-native challengers and a recent data-security incident that drew investor attention. On market sentiment, analysts have generally turned more cautious on LZ, while coverage on TRI skews constructive, though both stocks have traded below prior-year levels.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely favor TRI over LZ in the current environment. Thomson Reuters demonstrates more consistent trend fundamentals, including stable organic revenue growth, a higher and more durable margin, strong recurring revenue, and a shareholder-friendly capital-return posture. In contrast, LegalZoom's recent guidance reduction, declining subscriber units, and dependence on external traffic introduce greater uncertainty around near-term momentum. While no outcome is certain, an AI framework weighing trend consistency, margin stability, and catalysts would probably assign a higher probability of favorable positioning to TRI at this time.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is LZ is a StrongBuy and TRI is a StrongBuy.
Momentum Indicator for LZ turns positive, indicating new upward trend
LZ saw its Momentum Indicator move above the 0 level on October 07, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 90 similar instances where the indicator turned positive. In 73 of the 90 cases, the stock moved higher in the following days. The odds of a move higher are at 81%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for LZ just turned positive on October 05, 2026. Looking at past instances where LZ's MACD turned positive, the stock continued to rise in 32 of 42 cases over the following month. The odds of a continued upward trend are 76%.
LZ moved above its 50-day moving average on October 12, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for LZ crossed bullishly above the 50-day moving average on October 15, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 13 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 72%.
Following a +4.76% 3-day Advance, the price is estimated to grow further. Considering data from situations where LZ advanced for three days, in 206 of 293 cases, the price rose further within the following month. The odds of a continued upward trend are 70%.
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 10 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LZ declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 82%.
LZ broke above its upper Bollinger Band on October 20, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for LZ entered a downward trend on October 08, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 38 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 55 (best 1 - 100 worst), indicating steady price growth. LZ’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 68 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 86 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.889) is normal, around the industry mean (5.959). P/E Ratio (66.000) is within average values for comparable stocks, (32.103). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (1.946). Dividend Yield (0.000) settles around the average of (0.026) among similar stocks. P/S Ratio (1.392) is also within normal values, averaging (9.694).
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LZ’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock worse than average.
TRI in upward trend: price rose above 50-day moving average on October 08, 2026
TRI moved above its 50-day moving average on October 08, 2026 date and that indicates a change from a downward trend to an upward trend. In 22 of 31 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 71%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 02, 2026. You may want to consider a long position or call options on TRI as a result. In 43 of 78 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 55%.
The Moving Average Convergence Divergence (MACD) for TRI just turned positive on October 07, 2026. Looking at past instances where TRI's MACD turned positive, the stock continued to rise in 24 of 39 cases over the following month. The odds of a continued upward trend are 62%.
The 10-day moving average for TRI crossed bullishly above the 50-day moving average on October 15, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 8 of 12 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 67%.
The 50-day moving average for TRI moved above the 200-day moving average on September 17, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a +6.49% 3-day Advance, the price is estimated to grow further. Considering data from situations where TRI advanced for three days, in 174 of 317 cases, the price rose further within the following month. The odds of a continued upward trend are 55%.
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 9 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TRI declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 54%.
TRI broke above its upper Bollinger Band on October 08, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for TRI entered a downward trend on October 08, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 39 (best 1 - 100 worst), indicating steady price growth. TRI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 59 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 73 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.489) is normal, around the industry mean (5.959). P/E Ratio (30.601) is within average values for comparable stocks, (32.103). Projected Growth (PEG Ratio) (1.223) is also within normal values, averaging (1.946). Dividend Yield (0.023) settles around the average of (0.026) among similar stocks. P/S Ratio (5.711) is also within normal values, averaging (9.694).
The Tickeron PE Growth Rating for this company is 78 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 94 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TRI’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock worse than average.
TRI | ||
|---|---|---|
OUTLOOK RATING 1..100 | 38 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 73 Overvalued | |
PROFIT vs RISK RATING 1..100 | 94 | |
SMR RATING 1..100 | 59 | |
PRICE GROWTH RATING 1..100 | 39 | |
P/E GROWTH RATING 1..100 | 78 | |
SEASONALITY SCORE 1..100 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
| LZ | TRI | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 70% | 2 days ago 38% |
| Stochastic ODDS (%) | 2 days ago 79% | 2 days ago 54% |
| Momentum ODDS (%) | 2 days ago 81% | 2 days ago 55% |
| MACD ODDS (%) | 2 days ago 76% | 2 days ago 62% |
| TrendWeek ODDS (%) | 2 days ago 71% | 2 days ago 57% |
| TrendMonth ODDS (%) | 2 days ago 72% | 2 days ago 54% |
| Advances ODDS (%) | 2 days ago 70% | 2 days ago 55% |
| Declines ODDS (%) | 25 days ago 82% | 18 days ago 54% |
| BollingerBands ODDS (%) | 2 days ago 79% | 2 days ago 44% |
| Aroon ODDS (%) | 2 days ago 84% | 2 days ago 62% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
LZ’s FA Score shows that 0 FA rating(s) are green while TRI’s FA Score has 0 green FA rating(s).
- LZ’s FA Score: 0 green, 5 red.
- TRI’s FA Score: 0 green, 5 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
LZ’s TA Score shows that 5 TA indicator(s) are bullish while TRI’s TA Score has 6 bullish TA indicator(s).
- LZ’s TA Score: 5 bullish, 5 bearish.
- TRI’s TA Score: 6 bullish, 5 bearish.
Price Growth
LZ (@Office Equipment/Supplies) experienced а +10.18% price change this week, while TRI (@Office Equipment/Supplies) price change was +9.35% for the same time period.
The average weekly price growth across all stocks in the @Office Equipment/Supplies industry was -1.57%. For the same industry, the average monthly price growth was -6.28%, and the average quarterly price growth was -3.18%.
Reported Earning Dates
LZ is expected to report earnings on Nov 04, 2026.
TRI is expected to report earnings on Nov 03, 2026.
Industries' Descriptions
@Office Equipment/Supplies (-1.57% weekly)The industry produces equipment regularly used in offices by businesses and other organizations, and could range from items like Blank sheet paper, calendars, Label and adhesive paper, paper clips, janitorial supplies, to larger /higher cost products like computers, printers, photocopiers, office furniture and so on. Many businesses in the office supply industry have been expanding into related markets like business cards, plus printing and binding of high quality, high volume business and engineering documents. Some companies in this industry also offer shipping services, including packaging and bulk mailing. Herman Miller, Inc., Steelcase Inc. and HNI Corporation.
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LZ and
Correlation & Price change
A.I.dvisor indicates that over the last year, LZ has been loosely correlated with RELX. These tickers have moved in lockstep 49% of the time. This A.I.-generated data suggests there is some statistical probability that if LZ jumps, then RELX could also see price increases.
TRI and
Correlation & Price change
A.I.dvisor indicates that over the last year, TRI has been closely correlated with RELX. These tickers have moved in lockstep 68% of the time. This A.I.-generated data suggests there is a high statistical probability that if TRI jumps, then RELX could also see price increases.
| Ticker / NAME | Correlation To TRI | 1D Price Change % | ||
|---|---|---|---|---|
| TRI | 100% | +2.16% | ||
| RELX - TRI | 68% Closely correlated | -0.66% | ||
| EXPO - TRI | 50% Loosely correlated | +0.83% | ||
| LZ - TRI | 47% Loosely correlated | +1.07% | ||
| VRSK - TRI | 47% Loosely correlated | +0.77% | ||
| CPRT - TRI | 45% Loosely correlated | -0.88% | ||
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