Head to Head Review: Yelp (YELP) versus IAC/InterActiveCorp (IAC)
Yelp (NYSE: YELP) and IAC/InterActiveCorp (NASDAQ:IAC) are both mid-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Risk and Volatility
Yelp has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500. Comparatively, IAC/InterActiveCorp has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.
Insider and Institutional Ownership
90.9% of Yelp shares are owned by institutional investors. Comparatively, 85.2% of IAC/InterActiveCorp shares are owned by institutional investors. 10.1% of Yelp shares are owned by insiders. Comparatively, 10.6% of IAC/InterActiveCorp 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.
This is a breakdown of current ratings for Yelp and IAC/InterActiveCorp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Yelp currently has a consensus target price of $38.62, indicating a potential downside of 11.72%. IAC/InterActiveCorp has a consensus target price of $109.61, indicating a potential downside of 4.34%. Given IAC/InterActiveCorp’s stronger consensus rating and higher probable upside, analysts clearly believe IAC/InterActiveCorp is more favorable than Yelp.
This table compares Yelp and IAC/InterActiveCorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Yelp and IAC/InterActiveCorp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Yelp||$787.22 million||4.55||$43.09 million||$0.15||291.67|
|IAC/InterActiveCorp||$3.10 billion||2.95||$448.71 million||$2.66||43.08|
IAC/InterActiveCorp has higher revenue and earnings than Yelp. IAC/InterActiveCorp is trading at a lower price-to-earnings ratio than Yelp, indicating that it is currently the more affordable of the two stocks.
IAC/InterActiveCorp beats Yelp on 9 of the 13 factors compared between the two stocks.
Yelp Company Profile
Yelp Inc. (Yelp) connects people with local businesses by bringing ‘word of mouth’ online and providing a platform for businesses and consumers to engage and transact. The Company offers local business review sites. Yelp provides a platform for consumers to share their everyday local business experiences with other consumers by posting reviews, tips, photos and videos, and to engage directly with businesses, through reviews, its Request-A-Quote and Message the Business features, and by completing transactions on the Yelp Platform. Yelp also provides businesses of all sizes with a range of free and paid services that help them engage with consumers. The Yelp Platform allows consumers to transact with local businesses directly on Yelp through Yelp Eat24, the food ordering and delivery business; Yelp Reservations, its online reservations product, and integrations with partners ranging from Shoptiques.com (boutique shopping) to GolfNow (tee time booking) to BloomNation (flower ordering).
IAC/InterActiveCorp Company Profile
IAC/InterActiveCorp (IAC) is a media and Internet company. The Company’s brands include HomeAdvisor, Vimeo, Dictionary.com and Match Group’s online dating portfolio, which includes Tinder, PlentyOfFish and OkCupid. Its segments include Match Group, HomeAdvisor, Video, Applications and Publishing. Match Group includes the dating and non-dating businesses of Match Group, Inc. HomeAdvisor is a home services digital marketplace that helps connect consumers with home professionals in North America, as well as in France, the Netherlands and Italy under various brands. Its Video consists of Vimeo, Electus, CollegeHumor, Notional, IAC Films and Daily Burn. Applications consists of Consumer, which include its direct-to-consumer downloadable desktop applications, Apalon, which houses its mobile applications and SlimWare, and Partnerships, which includes its business-to-business partnership operations. Publishing consists of Premium Brands business, and Ask & Other business.
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