Financial Review: Blucora (BCOR) & WebMD Health (WBMD)
Blucora (NASDAQ: BCOR) and WebMD Health (NASDAQ:WBMD) are both business services companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.
Institutional & Insider Ownership
90.6% of Blucora shares are held by institutional investors. Comparatively, 91.0% of WebMD Health shares are held by institutional investors. 14.1% of Blucora shares are held by insiders. Comparatively, 5.6% of WebMD Health shares are held 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.
This is a breakdown of recent ratings and recommmendations for Blucora and WebMD Health, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Blucora currently has a consensus price target of $27.67, suggesting a potential upside of 16.98%. WebMD Health has a consensus price target of $62.67, suggesting a potential downside of 5.74%. Given Blucora’s stronger consensus rating and higher possible upside, analysts clearly believe Blucora is more favorable than WebMD Health.
This table compares Blucora and WebMD Health’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Blucora and WebMD Health’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Blucora||$455.91 million||2.39||-$65.15 million||($0.09)||-262.75|
WebMD Health has lower revenue, but higher earnings than Blucora. Blucora is trading at a lower price-to-earnings ratio than WebMD Health, indicating that it is currently the more affordable of the two stocks.
Blucora beats WebMD Health on 6 of the 11 factors compared between the two stocks.
Blucora Company Profile
Blucora, Inc. is a provider of technology-enabled financial solutions to consumers, small business owners and tax professionals. The Company operates through the Wealth Management and Tax Preparation segments. The Company’s Wealth Management segment consists of HD Vest, which provides financial advisors with an integrated platform of brokerage, investment advisory and insurance services to assist in making each financial advisor a financial service center for his/her clients The Company’s Tax Preparation segment provides digital do-it-yourself (DDIY) tax preparation solutions for consumers, small business owners and tax professionals. TaxAct, a provider of digital tax preparation solutions. HD Vest’s specialized model provides an open-architecture investment platform and technology tools to help financial advisors identify investment opportunities for their clients. TaxAct offers pricing and packaging options for tax professionals.
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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