Critical Analysis: Leaf Group (DMD) vs. WebMD Health Corp (WBMD)
Leaf Group (NYSE: DMD) and WebMD Health Corp (NASDAQ:WBMD) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, valuation, profitability, dividends and earnings.
This is a summary of recent recommendations and price targets for Leaf Group and WebMD Health Corp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|WebMD Health Corp||0||6||2||0||2.25|
Leaf Group presently has a consensus price target of $8.50, indicating a potential upside of 33.86%. WebMD Health Corp has a consensus price target of $64.00, indicating a potential downside of 3.67%. Given Leaf Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Leaf Group is more favorable than WebMD Health Corp.
Risk & Volatility
Leaf Group has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, WebMD Health Corp has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.
This table compares Leaf Group and WebMD Health Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|WebMD Health Corp||12.56%||23.67%||5.45%|
Earnings & Valuation
This table compares Leaf Group and WebMD Health Corp’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|WebMD Health Corp||$708.99 million||3.42||$184.52 million||$1.93||34.42|
WebMD Health Corp has higher revenue and earnings than Leaf Group. Leaf Group is trading at a lower price-to-earnings ratio than WebMD Health Corp, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
58.8% of Leaf Group shares are owned by institutional investors. Comparatively, 91.1% of WebMD Health Corp shares are owned by institutional investors. 44.0% of Leaf Group shares are owned by company insiders. Comparatively, 5.6% of WebMD Health Corp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
WebMD Health Corp beats Leaf Group on 7 of the 10 factors compared between the two stocks.
About Leaf Group
Leaf Group Ltd., formerly Demand Media, Inc., is diversified Internet marketplaces and media company. The Company has online media properties and marketplace platforms that enable communities of creators to reach audiences in lifestyle categories. The Company operates an online studio platform for the professional creation and distribution of content, as well as two online artist marketplaces. Its business comprises two service offerings: Content & Media and Marketplaces. The Company creates media content, including text articles, videos, photographs and designed visual formats, and publishes such content to its owned and operated online properties and to its customers’ online properties. The Company also offers its content creation and distribution platform to provide custom content and other content marketing solutions to brands, publishers and advertisers.
About WebMD Health Corp
WebMD Health Corp. is a provider of health information services. The Company provides its services to consumers, physicians and other healthcare professionals through its Websites, mobile applications and health-focused publications. Advertisers and sponsors use The WebMD Health Network to reach and engage healthcare professionals and consumers who are interested in healthy living, wellness, diseases and conditions, and other health-related topics. It also markets services under the WebMD Health Services brand that help employers and health plans improve the health and wellness of their employee and plan participant populations. The WebMD Health Network includes www.WebMD.com, its primary Website for consumers and related mobile applications; www.Medscape.com, its primary Website for physicians and other healthcare professionals and related mobile applications; and other Websites through which it provides its branded health and wellness content, tools and services.
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