Connecture (OTCMKTS: CNXR) and WebMD Health (NASDAQ:WBMD) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Connecture and WebMD Health’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Connecture -19.38% N/A -17.70%
WebMD Health 10.74% 15.50% 4.32%

Earnings and Valuation

This table compares Connecture and WebMD Health’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Connecture $81.89 million 0.07 -$26.53 million ($0.92) -0.26
WebMD Health N/A N/A N/A $1.93 34.45

WebMD Health has lower revenue, but higher earnings than Connecture. Connecture is trading at a lower price-to-earnings ratio than WebMD Health, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Connecture and WebMD Health, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Connecture 0 0 0 0 N/A
WebMD Health 0 6 1 0 2.14

WebMD Health has a consensus target price of $62.67, indicating a potential downside of 5.74%. Given WebMD Health’s higher possible upside, analysts clearly believe WebMD Health is more favorable than Connecture.

Institutional and Insider Ownership

38.8% of Connecture shares are owned by institutional investors. Comparatively, 91.0% of WebMD Health shares are owned by institutional investors. 68.6% of Connecture shares are owned by insiders. Comparatively, 5.6% of WebMD Health 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.

Summary

WebMD Health beats Connecture on 7 of the 9 factors compared between the two stocks.

About Connecture

Connecture, Inc. provides a Web-based consumer shopping, enrollment and retention platform for health insurance distribution. The Company caters its services to health insurance marketplace operators, such as health plans, brokers and exchange operators. It operates through four segments: Enterprise/Commercial, Enterprise/State, Medicare and Private Exchange. The Enterprise/Commercial segment offers insurance distribution solutions to health plans. The Enterprise/State segment offers the sales automation solutions to state Governments, which allow its customers to offer customized individual and small group exchanges. The Medicare segment offers Web-based Medicare plan comparison, prescription drug comparison and enrollment tools for health plans, pharmacy benefit managers, pharmacies, field marketing organizations and call centers. The Private Exchange segment offers defined-contribution benefit exchange solutions to benefit consultants, brokers, exchange operators and aggregators.

About WebMD Health

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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