Comparing IAC (NASDAQ:IAC) & Icahn Enterprises (NASDAQ:IEP)

IAC (NASDAQ:IAC) and Icahn Enterprises (NASDAQ:IEP) are both mid-cap multi-sector conglomerates companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.

Analyst Ratings

This is a breakdown of recent ratings and target prices for IAC and Icahn Enterprises, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IAC	0	2	12	0	2.86
Icahn Enterprises	0	1	0	0	2.00

IAC presently has a consensus target price of $47.92, suggesting a potential upside of 28.79%. Given IAC’s stronger consensus rating and higher probable upside, analysts plainly believe IAC is more favorable than Icahn Enterprises.

Profitability

This table compares IAC and Icahn Enterprises’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IAC	-14.52%	-8.23%	-5.44%
Icahn Enterprises	-6.78%	-15.65%	-4.06%

Valuation & Earnings

This table compares IAC and Icahn Enterprises”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IAC	$3.81 billion	0.73	-$539.90 million	($5.39)	-6.90
Icahn Enterprises	$10.02 billion	0.48	-$445.00 million	($1.23)	-6.85

Icahn Enterprises has higher revenue and earnings than IAC. IAC is trading at a lower price-to-earnings ratio than Icahn Enterprises, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

IAC has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, Icahn Enterprises has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.

Insider & Institutional Ownership

88.9% of IAC shares are held by institutional investors. Comparatively, 87.1% of Icahn Enterprises shares are held by institutional investors. 16.1% of IAC shares are held by insiders. Comparatively, 90.1% of Icahn Enterprises shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

IAC beats Icahn Enterprises on 8 of the 14 factors compared between the two stocks.

About IAC

IAC Inc., together with its subsidiaries, operates as a media and internet company worldwide. The company publishes original and engaging digital content in the form of articles, illustrations, and videos and images across entertainment, food, home, beauty, travel, health, family, luxury, and fashion areas; and magazines related to women and lifestyle. It also operates a digital marketplace that connects home service professionals with consumers for repairing, remodeling, cleaning, landscaping, maintenance, and enhancement services under the Angi Ads, Angi Leads, and Angi Services brands. In addition, the company operates websites that offer general search services and information, including Ask.com, a search site with a variety of fresh and contemporary content; Reference.com that offers content across select vertical categories; Consumersearch.com, which offers content designed to simplify the product research process; and Shopping.net, a vertical shopping search site that contains a mix of search services and/or content targeted to various user or segment demographics, as well as offers direct-to-consumer downloadable desktop applications. Further, it offers Care.com, an online destination for families to connect with caregivers for their children, aging parents, pets, and homes; develops and provides subscription mobile applications across the communication, language, weather, business, health, and lifestyle verticals; a technology driven staffing platform for flexible W-2 work under the Bluecrew name; a platform to connect healthcare professionals with job opportunities under the Vivian Health name; The Daily Beast, a website dedicated to news, commentary, culture, and entertainment that publishes original reporting and opinion; and production and producer services for feature films for sale and distribution through theatrical releases and video-on-demand services. The company was formerly known as IAC/InterActiveCorp. The company is headquartered in New York, New York.

About Icahn Enterprises

Icahn Enterprises L.P., through its subsidiaries, engages in the investment, energy, automotive, food packaging, real estate, home fashion, and pharma businesses in the United States and Internationally. The Investment segment invests its proprietary capital through various private investment funds. This segment provides investment advisory and other related services. The Energy segment refines and markets transportation fuels in the form of gasoline and diesel fuels, as well as renewable diesel; and manufactures nitrogen fertilizers in the form of urea ammonium nitrate and ammonia. The Automotive segment sells automotive parts and materials, and retailed merchandise; offers automotive repair and maintenance services; and leases real estate properties. The Food Packaging segment produces and sells cellulosic, fibrous, and plastic casings that are used to prepare and package processed meat products. The Real Estate segment is involved in the leasing of land, retail, office, and industrial properties; the development and sale of single-family homes; and the operation of country clubs. The Home Fashion segment manufactures, sources, markets, distributes, and sells home fashion consumer products. The Pharma segment offers pharmaceutical products and services. The company was incorporated in 1987 and is headquartered in Sunny Isles Beach, Florida.