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

Profitability

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

Net Margins Return on Equity Return on Assets
Qunar Cayman Islands -67.87% -291.65% -30.15%
WebMD Health Corp 12.56% 23.67% 5.45%

Institutional and Insider Ownership

4.9% of Qunar Cayman Islands shares are held by institutional investors. Comparatively, 91.0% of WebMD Health Corp shares are held by institutional investors. 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 is poised for long-term growth.

Risk and Volatility

Qunar Cayman Islands has a beta of 2.05, meaning that its stock price is 105% more volatile than the S&P 500. Comparatively, WebMD Health Corp has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Qunar Cayman Islands and WebMD Health Corp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Qunar Cayman Islands 0 0 0 0 N/A
WebMD Health Corp 0 6 2 0 2.25

WebMD Health Corp has a consensus target price of $64.00, suggesting a potential downside of 3.73%. Given WebMD Health Corp’s higher possible upside, analysts clearly believe WebMD Health Corp is more favorable than Qunar Cayman Islands.

Earnings and Valuation

This table compares Qunar Cayman Islands and WebMD Health Corp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Qunar Cayman Islands N/A N/A N/A ($8.43) -3.61
WebMD Health Corp $708.99 million 3.42 $184.52 million $1.93 34.45

WebMD Health Corp has higher revenue and earnings than Qunar Cayman Islands. Qunar Cayman Islands 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.

Summary

WebMD Health Corp beats Qunar Cayman Islands on 9 of the 10 factors compared between the two stocks.

About Qunar Cayman Islands

Qunar Cayman Islands Limited (Qunar) is engaged in offering mobile and online commerce platform for travel in China. The Company offers a range of travel products, including flights, hotels, vacations packages, attraction tickets and other travel related offerings. The Company offers Qunar Travel, which is a mobile application that enables its users to search for and purchase travel products. The Company’s software as a service (SaaS) system provides an online presence for over 360,000 travel service providers. Its search engine provides real-time travel products information directly sourced from travel service providers and through its SaaS platform. The Company’s main lines of business include flight tickets, hotels, vacation packages and attraction tickets. It offers display advertising, train tickets, car services, tour guides and other services. Its system provides instant confirmation of booking, rescheduling and cancellation for its flight ticket transactions.

About WebMD Health Corp

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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