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

Insider & Institutional Ownership

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91.0% of WebMD Health shares are owned by institutional investors. Comparatively, 68.4% of Rightside Group shares are owned by institutional investors. 5.6% of WebMD Health shares are owned by company insiders. Comparatively, 2.4% of Rightside Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares WebMD Health and Rightside Group’s top-line revenue, earnings per share 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 34.45
Rightside Group N/A N/A N/A ($2.09) -5.08

Rightside Group is trading at a lower price-to-earnings ratio than WebMD Health, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for WebMD Health and Rightside Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WebMD Health 0 4 1 0 2.20
Rightside Group 0 1 0 0 2.00

WebMD Health presently has a consensus price target of $66.50, suggesting a potential upside of 0.03%. Rightside Group has a consensus price target of $10.60, suggesting a potential downside of 0.09%. Given WebMD Health’s stronger consensus rating and higher possible upside, analysts plainly believe WebMD Health is more favorable than Rightside Group.

Profitability

This table compares WebMD Health and Rightside Group’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%
Rightside Group -39.04% -15.14% -8.53%

Summary

WebMD Health beats Rightside Group on 10 of the 10 factors compared between the two stocks.

About WebMD Health

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.

About Rightside Group

Rightside Group, Ltd. is a provider of domain name services that enable businesses and consumers to find, establish and maintain their digital address. The Company is a registrar, offering domain name registration and other related services to resellers and domain name registrants. It provides infrastructure services through its eNom brand. It has over 16.5 million domain names under management. It has a portfolio of over 40 generic Top Level Domains (gTLDs) acquired through Internet Corporation for Assigned Names and Numbers (ICANN)’s expansion of new gTLDs. It has launched all of its gTLDs, including .NEWS, .LIVE, and .FAMILY, into general availability in the marketplace. Its registry services business builds a distribution network of over 125 ICANN accredited registrars, including GoDaddy, eNom and Name.com, as well as other complementary distribution partners, such as Website builders and e-mail service providers, that offer its gTLD domain names to businesses and consumers.

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