Connecture (NASDAQ: CNXR) and Liberty TripAdvisor Holdings (NASDAQ:LTRPA) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Profitability

This table compares Connecture and Liberty TripAdvisor Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Connecture -21.91% N/A -20.45%
Liberty TripAdvisor Holdings 1.20% 0.45% 0.33%

Valuation & Earnings

This table compares Connecture and Liberty TripAdvisor Holdings’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Connecture $82.18 million 0.22 -$8.20 million ($1.02) -0.76
Liberty TripAdvisor Holdings $1.58 billion 0.63 $238.00 million $0.39 35.38

Liberty TripAdvisor Holdings has higher revenue and earnings than Connecture. Connecture is trading at a lower price-to-earnings ratio than Liberty TripAdvisor Holdings, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Connecture has a beta of 2.15, meaning that its share price is 115% more volatile than the S&P 500. Comparatively, Liberty TripAdvisor Holdings has a beta of 2.24, meaning that its share price is 124% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Connecture and Liberty TripAdvisor Holdings, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Connecture 0 0 0 0 N/A
Liberty TripAdvisor Holdings 0 1 0 0 2.00

Institutional & Insider Ownership

38.8% of Connecture shares are owned by institutional investors. Comparatively, 93.8% of Liberty TripAdvisor Holdings shares are owned by institutional investors. 58.1% of Connecture shares are owned by company insiders. Comparatively, 4.0% of Liberty TripAdvisor Holdings shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Liberty TripAdvisor Holdings beats Connecture on 9 of the 10 factors compared between the two stocks.

Connecture Company Profile

Connecture, Inc. provides a Web-based consumer shopping, enrollment and retention platform for health insurance distribution. The Company caters its services to health insurance marketplace operators, such as health plans, brokers and exchange operators. It operates through four segments: Enterprise/Commercial, Enterprise/State, Medicare and Private Exchange. The Enterprise/Commercial segment offers insurance distribution solutions to health plans. The Enterprise/State segment offers the sales automation solutions to state Governments, which allow its customers to offer customized individual and small group exchanges. The Medicare segment offers Web-based Medicare plan comparison, prescription drug comparison and enrollment tools for health plans, pharmacy benefit managers, pharmacies, field marketing organizations and call centers. The Private Exchange segment offers defined-contribution benefit exchange solutions to benefit consultants, brokers, exchange operators and aggregators.

Liberty TripAdvisor Holdings Company Profile

Liberty TripAdvisor Holdings, Inc. is a holding company. Through its interests in subsidiaries and other companies, the Company is primarily engaged in the online travel research and online commerce industries. The Company’s subsidiaries include TripAdvisor, Inc. (TripAdvisor), which owns and operates a portfolio of online travel brands, and BuySeasons, Inc., which owns and operates BuyCostumes.com and the Celebrate Express (BuySeasons) family of Websites. TripAdvisor is a travel site focusing on helping people around the world to plan and book a trip. TripAdvisor manages its business in two segments: Hotel, including click-based advertising, display-based advertising and subscription-based advertising, and Non-Hotel, including its attractions, restaurants and vacation rental businesses. BuySeasons is an online retailer and supplier of costumes, accessories, seasonal decor and party supplies.

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