Care.com (NYSE: CRCM) and WebMD Health Corp (NASDAQ:WBMD) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitabiliy, valuation, risk and earnings.
Analyst Ratings
This is a breakdown of current ratings and target prices for Care.com and WebMD Health Corp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Care.com | 0 | 2 | 1 | 0 | 2.33 |
| WebMD Health Corp | 0 | 4 | 5 | 0 | 2.56 |
Care.com currently has a consensus target price of $12.17, suggesting a potential downside of 17.79%. WebMD Health Corp has a consensus target price of $63.88, suggesting a potential upside of 15.61%. Given WebMD Health Corp’s stronger consensus rating and higher probable upside, analysts plainly believe WebMD Health Corp is more favorable than Care.com.
Volatility & Risk
Care.com has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, WebMD Health Corp has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.
Valuation & Earnings
This table compares Care.com and WebMD Health Corp’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Care.com | $165.85 million | 2.62 | $7.41 million | ($0.04) | -369.91 |
| WebMD Health Corp | $700.55 million | 2.86 | $181.67 million | $1.89 | 29.23 |
WebMD Health Corp has higher revenue and earnings than Care.com. Care.com 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.
Insider & Institutional Ownership
72.1% of Care.com shares are held by institutional investors. Comparatively, 92.0% of WebMD Health Corp shares are held by institutional investors. 24.7% of Care.com shares are held by company insiders. Comparatively, 5.6% of WebMD Health Corp shares are held by company 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.
Profitability
This table compares Care.com and WebMD Health Corp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Care.com | 0.67% | 3.79% | 1.82% |
| WebMD Health Corp | 12.55% | 27.77% | 5.61% |
Summary
WebMD Health Corp beats Care.com on 11 of the 14 factors compared between the two stocks.
Care.com Company Profile
Care.com, Inc. is an online marketplace for finding and managing family care. As of December 31, 2016, the Company had 22.8 million members, including 12.9 million families and 9.9 million caregivers, spanning 19 countries. Its consumer matching solutions allow families to search for, qualify, vet, connect with and select caregivers. It also provides caregivers with solutions to create personal profiles, describe their skills and experience, and otherwise differentiate and market themselves in a fragmented marketplace. In addition to consumer matching solutions, the Company offers its members products and services to facilitate their interaction with caregivers. It serves employers by providing access to certain of its products and services to employer-sponsored families. In addition, it serves care-related businesses, such as day care centers, nanny agencies and home care agencies, willing to market their services to its care-seeking families and recruit its caregiver members.
WebMD Health Corp Company Profile
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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