Connecture (OTCMKTS: CNXR) and WebMD Health (NASDAQ:WBMD) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.
This is a breakdown of recent recommendations and price targets for Connecture and WebMD Health, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
WebMD Health has a consensus target price of $62.67, indicating a potential downside of 5.74%. Given WebMD Health’s higher possible upside, analysts clearly believe WebMD Health is more favorable than Connecture.
Earnings & Valuation
This table compares Connecture and WebMD Health’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Connecture||$81.89 million||0.04||-$26.53 million||($0.67)||-0.19|
WebMD Health has lower revenue, but higher earnings than Connecture. Connecture is trading at a lower price-to-earnings ratio than WebMD Health, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
38.8% of Connecture shares are held by institutional investors. Comparatively, 91.0% of WebMD Health shares are held by institutional investors. 68.6% of Connecture 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, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Connecture and WebMD Health’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
WebMD Health beats Connecture on 7 of the 9 factors compared between the two stocks.
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.
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.
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