Grupo Mexico (OTCMKTS:GMBXF) and IAC (NASDAQ:IAC) Critical Review

Grupo Mexico (OTCMKTS:GMBXF) and IAC (NASDAQ:IAC) are both multi-sector conglomerates companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Valuation & Earnings

This table compares Grupo Mexico and IAC”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grupo Mexico	N/A	N/A	N/A	N/A	N/A
IAC	$2.39 billion	1.09	-$104.03 million	($1.33)	-27.42

Grupo Mexico has higher earnings, but lower revenue than IAC.

Risk & Volatility

Grupo Mexico has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500. Comparatively, IAC has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.

Institutional and Insider Ownership

88.9% of IAC shares are owned by institutional investors. 16.1% of IAC shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Grupo Mexico and IAC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grupo Mexico	N/A	N/A	N/A
IAC	-4.35%	-2.43%	-1.62%

Analyst Recommendations

This is a breakdown of recent ratings for Grupo Mexico and IAC, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grupo Mexico	0	4	1	0	2.20
IAC	1	3	10	0	2.64

IAC has a consensus target price of $46.83, indicating a potential upside of 28.42%. Given IAC’s stronger consensus rating and higher probable upside, analysts plainly believe IAC is more favorable than Grupo Mexico.

Summary

IAC beats Grupo Mexico on 7 of the 10 factors compared between the two stocks.

About Grupo Mexico

Grupo México, S.A.B. de C.V. engages in copper production, cargo transportation, and infrastructure businesses worldwide. The company operates through Mining, Transportation, and Infrastructure divisions. The Mining division explores for copper, silver, molybdenum, zinc, sulfuric acid, gold, and selenium. It owns interests in 14 underground and open pit mines, and 8 exploration projects in Mexico, Peru, the United States, Argentina, Chile, Ecuador, and Spain. The Transportation division offers railroad transportation services, including general and intermodal freight services by railroad; passenger transportation services; and auxiliary terminal management and intra-terminal hauling services. This division provides railroad services for the agriculture, automotive, cement, energy, intermodal, metals and minerals, industrial products, and chemical and fertilizer sectors. It operates a railroad network of 11,137 km across 24 states in Mexico. The Infrastructure division offers land and ocean drilling services; and engineering services. It also generates energy through a combined cycle plant and wind farm; and constructs, operates, and maintains Salamanca-León highway and Silao Bypas. Grupo México, S.A.B. de C.V. was founded in 1890 and is based in Mexico City, Mexico.

About IAC

IAC Inc., together with its subsidiaries, operates as a media and internet company worldwide. The company publishes original and engaging digital content in the form of articles, illustrations, and videos and images across entertainment, food, home, beauty, travel, health, family, luxury, and fashion areas; and magazines related to women and lifestyle. It also operates a digital marketplace that connects home service professionals with consumers for repairing, remodeling, cleaning, landscaping, maintenance, and enhancement services under the Angi Ads, Angi Leads, and Angi Services brands. In addition, the company operates websites that offer general search services and information, including Ask.com, a search site with a variety of fresh and contemporary content; Reference.com that offers content across select vertical categories; Consumersearch.com, which offers content designed to simplify the product research process; and Shopping.net, a vertical shopping search site that contains a mix of search services and/or content targeted to various user or segment demographics, as well as offers direct-to-consumer downloadable desktop applications. Further, it offers Care.com, an online destination for families to connect with caregivers for their children, aging parents, pets, and homes; develops and provides subscription mobile applications across the communication, language, weather, business, health, and lifestyle verticals; a technology driven staffing platform for flexible W-2 work under the Bluecrew name; a platform to connect healthcare professionals with job opportunities under the Vivian Health name; The Daily Beast, a website dedicated to news, commentary, culture, and entertainment that publishes original reporting and opinion; and production and producer services for feature films for sale and distribution through theatrical releases and video-on-demand services. The company was formerly known as IAC/InterActiveCorp. The company is headquartered in New York, New York.