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

Institutional and Insider Ownership

91.0% of WebMD Health Corp. shares are owned by institutional investors. Comparatively, 92.0% of TrueCar shares are owned by institutional investors. 5.6% of WebMD Health Corp. shares are owned by insiders. Comparatively, 15.5% of TrueCar shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.


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

Net Margins Return on Equity Return on Assets
WebMD Health Corp. 10.74% 15.50% 4.32%
TrueCar -9.86% -11.00% -8.49%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for WebMD Health Corp. and TrueCar, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WebMD Health Corp. 0 6 2 0 2.25
TrueCar 0 4 6 0 2.60

WebMD Health Corp. currently has a consensus price target of $64.00, suggesting a potential downside of 3.73%. TrueCar has a consensus price target of $18.33, suggesting a potential upside of 13.94%. Given TrueCar’s stronger consensus rating and higher possible upside, analysts plainly believe TrueCar is more favorable than WebMD Health Corp..

Valuation and Earnings

This table compares WebMD Health Corp. and TrueCar’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
WebMD Health Corp. N/A N/A N/A $1.93 34.45
TrueCar $277.51 million 5.39 -$41.70 million ($0.34) -47.32

WebMD Health Corp. has higher revenue, but lower earnings than TrueCar. TrueCar 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.


TrueCar beats WebMD Health Corp. on 6 of the 10 factors compared between the two stocks.

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.

TrueCar Company Profile

TrueCar, Inc. is an Internet-based information, technology, and communication services company. The Company has a data-driven online platform, which features market data and analytics. The Company-branded platform is available on its TrueCar Website and mobile applications. It customizes and operates its platform on a co-branded basis for its affinity group marketing partners, including financial institutions, membership-based organizations, and employee buying programs for a range of enterprises. The Company enables users to obtain market-based pricing data on new and used cars, and to connect with its network of TrueCar Certified Dealers. Its network of over 13,000 TrueCar Certified Dealers consists primarily of new car franchises, as well as independent dealers selling used vehicles. Its subsidiary, ALG, Inc., provides forecasts and consulting services regarding determination of the residual value of an automobile at given future points in time.

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