WebMD Health (WBMD) versus Weibo (NASDAQ:WB) Critical Survey

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

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WebMD Health N/A N/A N/A $1.93 N/A
Weibo $655.80 million 34.90 $108.02 million $1.18 87.68

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

Insider and Institutional Ownership

91.0% of WebMD Health shares are held by institutional investors. Comparatively, 22.0% of Weibo shares are held by institutional investors. 5.6% of WebMD Health shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for WebMD Health and Weibo, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WebMD Health 0 6 1 0 2.14
Weibo 0 0 6 0 3.00

WebMD Health presently has a consensus price target of $62.67, suggesting a potential upside of Infinity. Weibo has a consensus price target of $99.17, suggesting a potential downside of 4.15%. Given WebMD Health’s higher probable upside, equities analysts plainly believe WebMD Health is more favorable than Weibo.

Profitability

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

Net Margins Return on Equity Return on Assets
WebMD Health 10.74% 15.50% 4.32%
Weibo 26.85% 30.00% 20.97%

Summary

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

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.

About Weibo

Weibo Corporation is a social media platform for people to create, distribute and discover Chinese-language content. The Company provides ways for people and organizations to publicly express themselves in real time, interact with others on a global platform and stay connected with the world. It operates in two segments: advertising and marketing services and other services. It offers self-expression products that enable its users to express themselves on its platform; social products to promote social interaction between users on its platform; discovery products to help users discover content on its platform, and notifications to notify users on Weibo account activities through short message service (SMS) or push notification on their device. It offers advertising and marketing solutions to enable its customers to promote their brands and conduct marketing activities. It offers its platform partners with tools and application programming interfaces (APIs).

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