IAC/InterActiveCorp (IAC) vs. Connecture (CNXR) Head-To-Head Comparison

Connecture (OTCMKTS: CNXR) and IAC/InterActiveCorp (NASDAQ:IAC) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.

Profitability

This table compares Connecture and IAC/InterActiveCorp’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%
IAC/InterActiveCorp 11.81% 4.26% 1.98%

Analyst Recommendations

This is a breakdown of recent recommendations for Connecture and IAC/InterActiveCorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Connecture 0 0 0 0 N/A
IAC/InterActiveCorp 0 1 19 0 2.95

IAC/InterActiveCorp has a consensus target price of $146.05, indicating a potential upside of 1.09%. Given IAC/InterActiveCorp’s higher probable upside, analysts clearly believe IAC/InterActiveCorp is more favorable than Connecture.

Insider & Institutional Ownership

38.4% of Connecture shares are owned by institutional investors. Comparatively, 86.6% of IAC/InterActiveCorp shares are owned by institutional investors. 68.6% of Connecture shares are owned by company insiders. Comparatively, 10.6% of IAC/InterActiveCorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Connecture and IAC/InterActiveCorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Connecture $81.89 million 0.10 -$26.53 million ($0.67) -0.51
IAC/InterActiveCorp $3.14 billion 3.77 -$41.28 million $3.96 36.48

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

Summary

IAC/InterActiveCorp beats Connecture on 10 of the 12 factors compared between the two stocks.

Connecture Company Profile

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.

IAC/InterActiveCorp Company Profile

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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