WebMD Health Corp (WBMD) versus Its Competitors Critical Review
WebMD Health Corp (NASDAQ: WBMD) is one of 50 public companies in the “Internet Services” industry, but how does it contrast to its peers? We will compare WebMD Health Corp to similar businesses based on the strength of its dividends, risk, valuation, institutional ownership, earnings, profitability and analyst recommendations.
This table compares WebMD Health Corp and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|WebMD Health Corp||12.56%||23.67%||5.45%|
|WebMD Health Corp Competitors||-0.09%||26.83%||6.22%|
Institutional & Insider Ownership
91.0% of WebMD Health Corp shares are owned by institutional investors. Comparatively, 74.3% of shares of all “Internet Services” companies are owned by institutional investors. 5.6% of WebMD Health Corp shares are owned by company insiders. Comparatively, 19.5% of shares of all “Internet Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares WebMD Health Corp and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|WebMD Health Corp||$708.99 million||$184.52 million||34.45|
|WebMD Health Corp Competitors||$942.22 million||$116.70 million||53.64|
WebMD Health Corp’s peers have higher revenue, but lower earnings than WebMD Health Corp. WebMD Health Corp is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Risk & Volatility
WebMD Health Corp has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, WebMD Health Corp’s peers have a beta of 1.35, meaning that their average stock price is 35% more volatile than the S&P 500.
This is a breakdown of current ratings and price targets for WebMD Health Corp and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|WebMD Health Corp||0||6||2||0||2.25|
|WebMD Health Corp Competitors||445||1706||2656||106||2.49|
WebMD Health Corp currently has a consensus price target of $64.00, suggesting a potential downside of 3.73%. As a group, “Internet Services” companies have a potential upside of 1.66%. Given WebMD Health Corp’s peers stronger consensus rating and higher possible upside, analysts clearly believe WebMD Health Corp has less favorable growth aspects than its peers.
WebMD Health Corp peers beat WebMD Health Corp on 10 of the 13 factors compared.
WebMD Health Corp 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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