Cars.com (CARS) & WebMD Health (NASDAQ:WBMD) Financial Analysis

WebMD Health (NASDAQ: WBMD) and Cars.com (NYSE:CARS) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, institutional ownership, valuation and profitability.

Profitability

This table compares WebMD Health and Cars.com’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%
Cars.com 19.24% 8.18% 6.29%

Valuation & Earnings

This table compares WebMD Health and Cars.com’s gross revenue, earnings per share (EPS) 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 N/A
Cars.com $633.10 million 3.46 $176.37 million N/A N/A

Cars.com has higher revenue and earnings than WebMD Health.

Analyst Ratings

This is a breakdown of current recommendations for WebMD Health and Cars.com, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WebMD Health 0 6 1 0 2.14
Cars.com 0 1 2 0 2.67

WebMD Health presently has a consensus target price of $62.67, indicating a potential upside of Infinity. Cars.com has a consensus target price of $35.33, indicating a potential upside of 15.58%. Given WebMD Health’s higher possible upside, equities analysts clearly believe WebMD Health is more favorable than Cars.com.

Institutional and Insider Ownership

91.0% of WebMD Health shares are owned by institutional investors. 5.6% of WebMD Health shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Cars.com beats WebMD Health on 5 of the 9 factors compared between the two stocks.

WebMD Health Company Profile

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.

Cars.com Company Profile

Cars.com Inc. owns a digital automotive marketplace business (Cars.com). Cars.com is an online research destination for car shoppers. The Company is engaged in the sale of online subscription advertising products targeting car dealerships. It offers a suite of products and services targeting the automotive needs of its buyer and seller customers. Cars.com offers a digital automotive marketplace search engine that helps car buyers to make informed purchasing decisions and helps sellers to engage with a portion of their target customer base. This online automotive marketplace service connects buyers and sellers across five Websites: Cars.com, Auto.com, DealerRater.com, NewCars.com and PickupTrucks.com. Its automotive marketplace products also include credible user and automotive and dealer reviews. It is also engaged in the sale of display advertising to national advertisers. Car buyers and car owners interface with Cars.com primarily through the Cars.com sites and mobile applications.

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