Comparing WebMD Health (WBMD) and IAC/InterActiveCorp (IAC)

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

Earnings and Valuation

This table compares WebMD Health and IAC/InterActiveCorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WebMD Health N/A N/A N/A $1.93 34.45
IAC/InterActiveCorp $3.14 billion 3.77 -$41.28 million $3.96 36.48

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

Profitability

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

Net Margins Return on Equity Return on Assets
WebMD Health 10.74% 15.50% 4.32%
IAC/InterActiveCorp 11.81% 4.26% 1.98%

Insider and Institutional Ownership

91.0% of WebMD Health shares are held by institutional investors. Comparatively, 86.6% of IAC/InterActiveCorp shares are held by institutional investors. 5.6% of WebMD Health shares are held by insiders. Comparatively, 10.6% of IAC/InterActiveCorp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for WebMD Health and IAC/InterActiveCorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WebMD Health 0 6 1 0 2.14
IAC/InterActiveCorp 0 1 19 0 2.95

WebMD Health currently has a consensus price target of $62.67, suggesting a potential downside of 5.74%. IAC/InterActiveCorp has a consensus price target of $146.05, suggesting a potential upside of 1.09%. Given IAC/InterActiveCorp’s stronger consensus rating and higher probable upside, analysts plainly believe IAC/InterActiveCorp is more favorable than WebMD Health.

Summary

IAC/InterActiveCorp beats WebMD Health on 8 of the 11 factors compared between the two stocks.

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.

About IAC/InterActiveCorp

IAC/InterActiveCorp (IAC) is a media and Internet company. The Company’s brands include HomeAdvisor, Vimeo, Dictionary.com and Match Group’s online dating portfolio, which includes Tinder, PlentyOfFish and OkCupid. Its segments include Match Group, HomeAdvisor, Video, Applications and Publishing. Match Group includes the dating and non-dating businesses of Match Group, Inc. HomeAdvisor is a home services digital marketplace that helps connect consumers with home professionals in North America, as well as in France, the Netherlands and Italy under various brands. Its Video consists of Vimeo, Electus, CollegeHumor, Notional, IAC Films and Daily Burn. Applications consists of Consumer, which include its direct-to-consumer downloadable desktop applications, Apalon, which houses its mobile applications and SlimWare, and Partnerships, which includes its business-to-business partnership operations. Publishing consists of Premium Brands business, and Ask & Other business.

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