Head to Head Analysis: WebMD Health Corp (WBMD) and NIC (EGOV)
WebMD Health Corp (NASDAQ: WBMD) and NIC (NASDAQ:EGOV) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.
Valuation & Earnings
This table compares WebMD Health Corp and NIC’s revenue, earnings per share (EPS) 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|
|NIC||$327.22 million||3.36||$83.34 million||$0.84||19.76|
WebMD Health Corp has higher revenue and earnings than NIC. NIC 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.
This table compares WebMD Health Corp and NIC’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%|
NIC pays an annual dividend of $0.32 per share and has a dividend yield of 1.9%. WebMD Health Corp does not pay a dividend. NIC pays out 38.1% of its earnings in the form of a dividend.
Institutional and Insider Ownership
91.1% of WebMD Health Corp shares are owned by institutional investors. Comparatively, 92.9% of NIC shares are owned by institutional investors. 5.6% of WebMD Health Corp shares are owned by insiders. Comparatively, 4.1% of NIC shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility & Risk
WebMD Health Corp has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, NIC has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500.
This is a breakdown of recent ratings for WebMD Health Corp and NIC, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|WebMD Health Corp||0||6||2||0||2.25|
WebMD Health Corp presently has a consensus price target of $64.00, suggesting a potential downside of 3.67%. NIC has a consensus price target of $19.67, suggesting a potential upside of 18.47%. Given NIC’s higher possible upside, analysts clearly believe NIC is more favorable than WebMD Health Corp.
WebMD Health Corp beats NIC on 10 of the 16 factors compared between the two stocks.
WebMD Health Corp Company Profile
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.
NIC Company Profile
NIC Inc. is a provider of digital government services that help governments use technology to provide services to businesses and citizens. The Company operates through Outsourced Portals segment. The Company offers its services through two channels: primary outsourced portal businesses, and software and services businesses. In the primary outsourced portal businesses, the Company enters into contracts with state and local governments to design, build, and operate Internet-based, enterprise-wide portals on their behalf. Its software and services businesses include its subsidiaries that provide software development and payment processing services, other than outsourced portal services, to state and local governments, as well as federal agencies. The Company’s outsourced portal businesses include interactive government services (IGS), driver history records (DHR), Portal software development and services, and Portal management.
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