WebMD Health (WBMD) and Blucora (NASDAQ:BCOR) Financial Review

Blucora (NASDAQ: BCOR) and WebMD Health (NASDAQ:WBMD) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Blucora -0.46% 11.94% 5.80%
WebMD Health 10.74% 15.50% 4.32%

Analyst Ratings

This is a summary of recent recommendations and price targets for Blucora and WebMD Health, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blucora 0 1 3 0 2.75
WebMD Health 0 6 1 0 2.14

Blucora presently has a consensus price target of $27.67, suggesting a potential upside of 19.00%. WebMD Health has a consensus price target of $62.67, suggesting a potential downside of 5.74%. Given Blucora’s stronger consensus rating and higher possible upside, research analysts plainly believe Blucora is more favorable than WebMD Health.

Insider & Institutional Ownership

90.6% of Blucora shares are held by institutional investors. Comparatively, 91.0% of WebMD Health shares are held by institutional investors. 14.1% of Blucora 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, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Blucora and WebMD Health’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Blucora $455.91 million 2.35 -$65.15 million $0.03 775.00
WebMD Health N/A N/A N/A $1.93 34.45

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

Summary

Blucora beats WebMD Health on 7 of the 11 factors compared between the two stocks.

About Blucora

Blucora, Inc. is a provider of technology-enabled financial solutions to consumers, small business owners and tax professionals. The Company operates through the Wealth Management and Tax Preparation segments. The Company’s Wealth Management segment consists of HD Vest, which provides financial advisors with an integrated platform of brokerage, investment advisory and insurance services to assist in making each financial advisor a financial service center for his/her clients The Company’s Tax Preparation segment provides digital do-it-yourself (DDIY) tax preparation solutions for consumers, small business owners and tax professionals. TaxAct, a provider of digital tax preparation solutions. HD Vest’s specialized model provides an open-architecture investment platform and technology tools to help financial advisors identify investment opportunities for their clients. TaxAct offers pricing and packaging options for tax professionals.

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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