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

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

Institutional and Insider Ownership

85.6% of IAC/InterActiveCorp shares are owned by institutional investors. Comparatively, 91.0% of WebMD Health shares are owned by institutional investors. 10.6% of IAC/InterActiveCorp shares are owned by insiders. Comparatively, 5.6% of WebMD Health shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
IAC/InterActiveCorp 9.22% 2.57% 1.22%
WebMD Health 10.74% 15.50% 4.32%

Analyst Ratings

This is a summary of recent ratings and recommmendations for IAC/InterActiveCorp and WebMD Health, as reported by MarketBeat.

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

IAC/InterActiveCorp presently has a consensus price target of $153.20, indicating a potential upside of 2.31%. WebMD Health has a consensus price target of $62.67, indicating a potential upside of Infinity. Given WebMD Health’s higher possible upside, analysts clearly believe WebMD Health is more favorable than IAC/InterActiveCorp.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IAC/InterActiveCorp $3.31 billion 3.71 $304.92 million $3.15 47.54
WebMD Health N/A N/A N/A $1.93 N/A

IAC/InterActiveCorp has higher revenue and earnings than WebMD Health. 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.

Summary

IAC/InterActiveCorp beats WebMD Health on 6 of the 11 factors compared between the two stocks.

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.

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.

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