Critical Contrast: Blucora (BCOR) versus WebMD Health (WBMD)
Blucora (NASDAQ: BCOR) and WebMD Health (NASDAQ:WBMD) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.
Earnings and Valuation
This table compares Blucora and WebMD Health’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Blucora||$455.91 million||2.30||-$65.15 million||$0.03||756.67|
This table compares Blucora and WebMD Health’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
90.6% of Blucora shares are held by institutional investors. Comparatively, 91.0% of WebMD Health shares are held by institutional investors. 14.1% of Blucora shares are held by insiders. Comparatively, 5.6% of WebMD Health shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a breakdown of recent ratings for Blucora and WebMD Health, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Blucora currently has a consensus target price of $27.67, indicating a potential upside of 21.88%. WebMD Health has a consensus target price of $62.67, indicating a potential downside of 5.74%. Given Blucora’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Blucora is more favorable than WebMD Health.
Blucora beats WebMD Health on 7 of the 11 factors compared between the two stocks.
Blucora, Inc. is a provider of technology-enabled financial solutions to consumers, small business owners and tax professionals. The Company operates through the Wealth Management and Tax Preparation segments. The Company’s Wealth Management segment consists of HD Vest, which provides financial advisors with an integrated platform of brokerage, investment advisory and insurance services to assist in making each financial advisor a financial service center for his/her clients The Company’s Tax Preparation segment provides digital do-it-yourself (DDIY) tax preparation solutions for consumers, small business owners and tax professionals. TaxAct, a provider of digital tax preparation solutions. HD Vest’s specialized model provides an open-architecture investment platform and technology tools to help financial advisors identify investment opportunities for their clients. TaxAct offers pricing and packaging options for tax professionals.
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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