Contrasting WebMD Health Corp (WBMD) & Yelp (YELP)
WebMD Health Corp (NASDAQ: WBMD) and Yelp (NYSE:YELP) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.
This is a breakdown of recent recommendations and price targets for WebMD Health Corp and Yelp, as reported by MarketBeat.com.
|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, indicating a potential downside of 3.73%. Yelp has a consensus price target of $39.92, indicating a potential downside of 13.96%. Given WebMD Health Corp’s higher probable upside, equities analysts plainly believe WebMD Health Corp is more favorable than Yelp.
Earnings & Valuation
This table compares WebMD Health Corp and Yelp’s top-line 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||34.45|
|Yelp||$787.22 million||4.82||$43.09 million||$0.15||309.27|
WebMD Health Corp has higher revenue, but lower earnings than Yelp. WebMD Health Corp is trading at a lower price-to-earnings ratio than Yelp, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
91.0% of WebMD Health Corp shares are owned by institutional investors. Comparatively, 90.9% of Yelp shares are owned by institutional investors. 5.6% of WebMD Health Corp shares are owned by company insiders. Comparatively, 10.1% of Yelp shares are owned by company 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.
Risk & Volatility
WebMD Health Corp has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, Yelp has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500.
This table compares WebMD Health Corp and Yelp’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%|
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.
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).
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