Critical Review: Angie’s List (ANGI) versus WebMD Health Corp. (WBMD)

Angie’s List (NASDAQ: ANGI) and WebMD Health Corp. (NASDAQ:WBMD) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Profitability

This table compares Angie’s List and WebMD Health Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Angie’s List -17.04% -25.20% -14.67%
WebMD Health Corp. 10.74% 15.50% 4.32%

Analyst Ratings

This is a summary of current ratings and price targets for Angie’s List and WebMD Health Corp., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Angie’s List 1 4 5 0 2.40
WebMD Health Corp. 0 6 2 0 2.25

Angie’s List presently has a consensus target price of $11.91, indicating a potential upside of 1.50%. WebMD Health Corp. has a consensus target price of $64.00, indicating a potential downside of 3.73%. Given Angie’s List’s stronger consensus rating and higher possible upside, analysts plainly believe Angie’s List is more favorable than WebMD Health Corp..

Earnings and Valuation

This table compares Angie’s List and WebMD Health Corp.’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Angie’s List $323.33 million 2.27 -$7.85 million ($0.12) -97.74
WebMD Health Corp. N/A N/A N/A $1.93 34.45

WebMD Health Corp. has higher revenue, but lower earnings than Angie’s List. Angie’s List is trading at a lower price-to-earnings ratio than WebMD Health Corp., indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

80.0% of Angie’s List shares are owned by institutional investors. Comparatively, 91.0% of WebMD Health Corp. shares are owned by institutional investors. 18.2% of Angie’s List shares are owned by insiders. Comparatively, 5.6% of WebMD Health Corp. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

About Angie’s List

ANGI Homeservices Inc. is focused on creating digital marketplace for home services, connecting homeowners across the globe with home service professionals. The Company operates 10 brands including Angie’s List, HomeAdvisor, HomeStars, Instapro, MyBuilder, MyHammer, Travaux, Werkspot, CraftJack and mHelpDesk. The Company’s brand portfolio provides homeowners with tools and resources for home repair, maintenance and improvement projects. Angie’s List is America’s online review platform and provides services ranging from home repair, maintenance and improvement to auto service and health care. HomeAdvisor is the operator of the home services marketplace across the globe. HomeStars is online platform connecting homeowners with home renovators, repairmen and retailers throughout Canada. Instapro is Italy’s home services network connecting homeowners with service professionals for home renovation projects.

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.

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