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LZ vs TRI
Which Stock Would AI Choose? LegalZoom (LZ) vs. Thomson Reuters (TRI) Stock Comparison
Key Takeaways
- Tickeron AI Verdict: TRI is favored over LZ based on more consistent recurring-revenue growth, stronger profitability, and steadier trend positioning.
- LZ (LegalZoom) is a smaller, higher-multiple online legal services platform showing double-digit revenue growth but compressed margins and a declining share price trend.
- TRI (Thomson Reuters) is a diversified content-and-technology leader delivering high-single-digit organic growth with rising adjusted EPS and a shareholder-return program.
- Both companies are AI-exposed, but their market positioning differs sharply: LegalZoom faces AI-driven competitive risk, while Thomson Reuters is monetizing AI through tools like CoCounsel.
- For more context on each name, explore LZ Major News and LZ Today's Price Move, plus TRI Major News and TRI Today's Price Move.
- For a broader view of how automated strategies are positioning across the market, visit Trending AI Robots.
Introduction
Investors weighing opportunities in technology-enabled professional services may find themselves comparing two very different companies: LZ (LegalZoom), a consumer-and-small-business online legal services platform, and TRI (Thomson Reuters), a global content and technology company serving legal, tax, and accounting professionals. This stock comparison is relevant for growth-oriented traders evaluating relative performance and market positioning, as well as longer-term investors assessing durability, profitability, and AI exposure. Although both names operate adjacent to the legal industry, their business models, scale, and risk profiles diverge considerably, making a head-to-head analysis useful for understanding how each might perform under current market conditions.
LZ Overview and Recent Performance
LegalZoom, trading as LZ, operates an online platform for legal and compliance services aimed primarily at small businesses and consumers. In recent quarters, the company has reported solid top-line momentum, with revenue growth in the high-teens year over year, driven by higher-value subscriptions and compliance products. Subscription revenue now represents the majority of the mix, reflecting a deliberate shift toward recurring, higher-margin offerings.
Despite that growth, recent market activity has been less favorable. The stock has traded well below its 52-week high, and sentiment has been pressured by softer forward guidance and thinner net margins as the company invests in AI and "do-it-for-me" services. AI has been a double-edged theme: LegalZoom has rolled out tools such as an AI Assistant and highlighted faster trademark and patent workflows, but investors have also flagged competitive concerns from broader AI assistants that could alter how consumers discover legal services. The company was added to the S&P SmallCap 600 index, a milestone that can bring passive inflows, yet the shares continue to trade at an elevated earnings multiple relative to the professional-services peer group.
TRI Overview and Recent Performance
Thomson Reuters, trading as TRI, is a global provider of information, software, and workflow tools for legal, tax, audit, risk, and news professionals. Its flagship products include Westlaw, UltraTax, and CoCounsel. In recent periods, the company has reported total revenue growth of roughly 9%, with organic growth of about 8%, and organic growth of approximately 10% across its "Big 3" segments—Legal Professionals, Corporates, and Tax, Audit & Accounting Professionals.
Recent performance has been characterized by consistent recurring-revenue expansion, rising adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), and improving adjusted EPS. The company has sharpened its focus on "fiduciary-grade AI," releasing CoCounsel Legal and announcing a joint venture with KKR for its Global Print business. It has also returned capital to shareholders through a return-of-capital transaction, share repurchases, and a dividend increase. While the stock has experienced volatility, including a pullback from earlier highs, its broader trend and analyst consensus have remained constructive relative to smaller, higher-multiple peers.
Trending AI Robots
Tickeron's Trending AI Robots page curates a focused selection from a much larger universe of automated trading strategies. Tickeron offers hundreds of AI trading bots that collectively monitor thousands of different tickers, each with its own trading style, strategy, timeframe, performance statistics, and target ticker list. Rather than listing every available bot, the Trending section highlights only those best suited to current market conditions, helping users filter for strategies that are actively aligned with prevailing momentum and volatility. Because no two bots are identical, the page serves as a practical starting point for traders seeking systematic, data-driven approaches rather than manual screening. Explore the Trending AI Robots page to review the currently featured strategies and their performance metrics.
Head-to-Head Comparison
The two companies diverge most clearly on scale, business model, and risk profile. TRI is a diversified, cash-generative enterprise with recurring revenue comprising a large share of sales and a meaningful dividend yield. Its growth is steadier and its profitability more established, with adjusted EBITDA margins near 40%. By contrast, LZ is a smaller-cap growth story with a much thinner net margin and a higher price-to-earnings multiple, reflecting expectations for future earnings acceleration that have not yet fully materialized.
On momentum, the contrast is also clear. LegalZoom's shares have trended lower over the past year and carry elevated execution risk around AI disruption and margin recovery. Thomson Reuters, while not immune to volatility, has shown more stable relative performance backed by rising adjusted earnings and analyst consensus tilted toward Buy ratings. Both face AI-related catalysts, but the direction differs: for Thomson Reuters, AI is largely a monetization opportunity; for LegalZoom, it is partly a competitive threat that is still being navigated.
Tickeron AI Verdict
Based on observable factors such as trend consistency, earnings quality, recurring-revenue durability, and relative positioning, Tickeron's AI framework would likely favor TRI over LZ in the current environment. Thomson Reuters demonstrates steadier fundamental momentum, stronger profitability, and a more established AI monetization path, whereas LegalZoom's elevated multiple, thinner margins, and competitive uncertainties present a less consistent risk-adjusted profile. This is a probabilistic assessment rooted in relative strength and stability rather than a definitive forecast, and positioning could shift as new earnings data and catalysts emerge for either name.
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 Buy and TRI is a Hold.
LZ's Stochastic Oscillator remains in oversold zone for 1 day
Be on the lookout for a price bounce soon.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
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 11 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 61%.
Following a +4.37% 3-day Advance, the price is estimated to grow further. Considering data from situations where LZ advanced for three days, in 208 of 292 cases, the price rose further within the following month. The odds of a continued upward trend are 71%.
LZ may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 99 of 137 cases where LZ Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 72%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 05, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on LZ as a result. In 76 of 91 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 84%.
The Moving Average Convergence Divergence Histogram (MACD) for LZ turned negative on November 05, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In 33 of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at 77%.
LZ moved below its 50-day moving average on November 05, 2026 date and that indicates a change from an upward trend to a downward trend.
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%.
Fundamental Analysis (Ratings)
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 Price Growth Rating for this company is 76 (best 1 - 100 worst), indicating slightly worse than average price growth. LZ’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 83 (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 (7.051) is normal, around the industry mean (5.887). P/E Ratio (52.350) is within average values for comparable stocks, (33.618). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (1.946). Dividend Yield (0.000) settles around the average of (0.025) among similar stocks. P/S Ratio (1.392) is also within normal values, averaging (9.907).
The Tickeron PE Growth Rating for this company is 84 (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 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 83, placing this stock worse than average.
TRI sees MACD Histogram crosses below signal line
TRI saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on November 03, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 39 instances where the indicator turned negative. In 23 of the 39 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 59%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for TRI moved out of overbought territory on November 03, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 similar instances where the indicator moved out of overbought territory. In 18 of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at 46%.
The Momentum Indicator moved below the 0 level on November 05, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on TRI as a result. In 43 of 78 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 55%.
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 55%.
TRI broke above its upper Bollinger Band on October 22, 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.
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
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.
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 5 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 42%.
Following a +7.20% 3-day Advance, the price is estimated to grow further. Considering data from situations where TRI advanced for three days, in 177 of 319 cases, the price rose further within the following month. The odds of a continued upward trend are 55%.
The Aroon Indicator entered an Uptrend today. In 107 of 237 cases where TRI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 45%.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 46 (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 PE Growth Rating for this company is 63 (best 1 - 100 worst), pointing to 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 Valuation Rating of 74 (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 (4.384) is normal, around the industry mean (5.887). P/E Ratio (29.887) is within average values for comparable stocks, (33.618). Projected Growth (PEG Ratio) (1.223) is also within normal values, averaging (1.946). Dividend Yield (0.023) settles around the average of (0.025) among similar stocks. P/S Ratio (5.711) is also within normal values, averaging (9.907).
The Tickeron Profit vs. Risk Rating rating for this company is 99 (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 83, placing this stock worse than average.
TRI | ||
|---|---|---|
OUTLOOK RATING 1..100 | 26 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 74 Overvalued | |
PROFIT vs RISK RATING 1..100 | 99 | |
SMR RATING 1..100 | 59 | |
PRICE GROWTH RATING 1..100 | 46 | |
P/E GROWTH RATING 1..100 | 63 | |
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 82% | 2 days ago 46% |
| Stochastic ODDS (%) | 2 days ago 84% | 2 days ago 57% |
| Momentum ODDS (%) | 2 days ago 84% | 2 days ago 55% |
| MACD ODDS (%) | 2 days ago 77% | 2 days ago 59% |
| TrendWeek ODDS (%) | 2 days ago 82% | 2 days ago 58% |
| TrendMonth ODDS (%) | 2 days ago 79% | 2 days ago 55% |
| Advances ODDS (%) | 10 days ago 71% | 7 days ago 55% |
| Declines ODDS (%) | 2 days ago 82% | 3 days ago 55% |
| BollingerBands ODDS (%) | 2 days ago 77% | 2 days ago 44% |
| Aroon ODDS (%) | 2 days ago 72% | 2 days ago 45% |
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 6 TA indicator(s) are bullish while TRI’s TA Score has 5 bullish TA indicator(s).
- LZ’s TA Score: 6 bullish, 4 bearish.
- TRI’s TA Score: 5 bullish, 5 bearish.
Price Growth
LZ (@Office Equipment/Supplies) experienced а -29.60% price change this week, while TRI (@Office Equipment/Supplies) price change was -1.61% for the same time period.
The average weekly price growth across all stocks in the @Office Equipment/Supplies industry was +14.39%. For the same industry, the average monthly price growth was +0.41%, and the average quarterly price growth was +0.13%.
Reported Earning Dates
LZ is expected to report earnings on Feb 25, 2027.
Industries' Descriptions
@Office Equipment/Supplies (+14.39% 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% | +0.10% | ||
| RELX - TRI | 68% Closely correlated | -0.27% | ||
| EXPO - TRI | 50% Loosely correlated | +0.63% | ||
| LZ - TRI | 48% Loosely correlated | -2.89% | ||
| VRSK - TRI | 47% Loosely correlated | +1.70% | ||
| CPRT - TRI | 45% Loosely correlated | -0.46% | ||
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