WebMD Health Corp (NASDAQ: WBMD) and Autohome (NYSE:ATHM) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.
Volatility and Risk
WebMD Health Corp has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, Autohome has a beta of 2.19, meaning that its stock price is 119% more volatile than the S&P 500.
Earnings and Valuation
This table compares WebMD Health Corp and Autohome’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|WebMD Health Corp||$708.99 million||3.42||$184.52 million||$1.93||34.42|
|Autohome||$958.29 million||7.92||$233.45 million||$1.87||35.00|
Autohome has higher revenue and earnings than WebMD Health Corp. WebMD Health Corp is trading at a lower price-to-earnings ratio than Autohome, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
91.1% of WebMD Health Corp shares are held by institutional investors. Comparatively, 40.2% of Autohome shares are held by institutional investors. 5.6% of WebMD Health Corp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares WebMD Health Corp and Autohome’s 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%|
This is a summary of recent ratings for WebMD Health Corp and Autohome, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|WebMD Health Corp||0||6||2||0||2.25|
WebMD Health Corp currently has a consensus target price of $64.00, suggesting a potential downside of 3.67%. Autohome has a consensus target price of $58.33, suggesting a potential downside of 10.87%. Given WebMD Health Corp’s higher possible upside, equities research analysts clearly believe WebMD Health Corp is more favorable than Autohome.
Autohome beats WebMD Health Corp on 9 of the 14 factors compared between the two stocks.
About WebMD Health Corp
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.
Autohome Inc. is an online destination for automobile consumers in China. The Company is engaged in the provision of online advertising and dealer subscription services in the People’s Republic of China (PRC). The Company, through its Websites, autohome.com.cn and che168.com, and mobile applications, delivers content to automobile buyers and owners. These services are offered to automakers and dealers, and advertising agencies that represent automakers and dealers in the automobile industry. The Company’s autohome.com.cn targets automobile consumers with a focus on new automobiles. The Company’s professionally produced content is created by editorial team and includes automobile-related articles and reviews, pricing trends in various local markets, and photos and video clips. Its database also includes new and used automobile listings and promotional information. Its dealer subscription services allow dealers to market their inventory and services through its Websites.
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