Reviewing WebMD Health Corp. (WBMD) and Its Rivals
WebMD Health Corp. (NASDAQ: WBMD) is one of 51 public companies in the “Internet Services” industry, but how does it compare to its rivals? We will compare WebMD Health Corp. to related businesses based on the strength of its risk, profitability, earnings, institutional ownership, analyst recommendations, dividends and valuation.
This table compares WebMD Health Corp. and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|WebMD Health Corp.||10.74%||15.50%||4.32%|
|WebMD Health Corp. Competitors||0.86%||27.78%||6.09%|
Institutional and Insider Ownership
91.0% of WebMD Health Corp. shares are held by institutional investors. Comparatively, 63.0% of shares of all “Internet Services” companies are held by institutional investors. 5.6% of WebMD Health Corp. shares are held by company insiders. Comparatively, 22.2% of shares of all “Internet Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk and 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, WebMD Health Corp.’s rivals have a beta of 1.35, suggesting that their average stock price is 35% more volatile than the S&P 500.
Valuation & Earnings
This table compares WebMD Health Corp. and its rivals revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|WebMD Health Corp.||$708.99 million||$184.52 million||34.45|
|WebMD Health Corp. Competitors||$956.92 million||$128.04 million||54.20|
WebMD Health Corp.’s rivals have higher revenue, but lower earnings than WebMD Health Corp.. WebMD Health Corp. is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
This is a breakdown of recent recommendations and price targets for WebMD Health Corp. and its rivals, as reported 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. Competitors||400||1565||2635||86||2.51|
WebMD Health Corp. currently has a consensus target price of $64.00, indicating a potential downside of 3.73%. As a group, “Internet Services” companies have a potential upside of 2.58%. Given WebMD Health Corp.’s rivals stronger consensus rating and higher probable upside, analysts plainly believe WebMD Health Corp. has less favorable growth aspects than its rivals.
WebMD Health Corp. rivals beat WebMD Health Corp. on 10 of the 13 factors compared.
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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