Morningstar (NASDAQ: MORN) and Everyday Health (NYSE:EVDY) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Analyst Ratings

This is a summary of current ratings and price targets for Morningstar and Everyday Health, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Morningstar 0 0 0 0 N/A
Everyday Health 0 1 0 0 2.00

Everyday Health has a consensus target price of $11.00, suggesting a potential upside of 4.76%. Given Everyday Health’s higher possible upside, analysts clearly believe Everyday Health is more favorable than Morningstar.

Profitability

This table compares Morningstar and Everyday Health’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Morningstar 19.11% 15.43% 8.28%
Everyday Health -9.73% -14.40% -6.75%

Dividends

Morningstar pays an annual dividend of $0.92 per share and has a dividend yield of 1.1%. Everyday Health does not pay a dividend. Morningstar pays out 23.5% of its earnings in the form of a dividend.

Volatility and Risk

Morningstar has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, Everyday Health has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Earnings and Valuation

This table compares Morningstar and Everyday Health’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Morningstar $847.00 million 4.28 $228.30 million $3.91 21.79
Everyday Health N/A N/A N/A ($0.93) -11.29

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

Insider and Institutional Ownership

38.4% of Morningstar shares are held by institutional investors. Comparatively, 73.1% of Everyday Health shares are held by institutional investors. 57.4% of Morningstar shares are held by company insiders. Comparatively, 19.8% of Everyday Health shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Morningstar beats Everyday Health on 7 of the 11 factors compared between the two stocks.

About Morningstar

Morningstar, Inc. is a provider of independent investment research in North America, Europe, Australia, and Asia. The Company focuses to create products that help investors reach their financial goals. It offers a range of data, software, research, and investment management offerings for financial advisors, asset managers, sponsors, and individual investors. It provides data and research insights on a range of investment offerings, including managed investment products, listed companies, capital markets, and real-time global market data. It conducts its business operations outside of the United States through subsidiaries in countries, including Australia, Brazil, Canada, Chile, Denmark, France, Germany, India, Italy, Japan, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, People’s Republic of China (both Hong Kong and the mainland), Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, the United Arab Emirates, and the United Kingdom.

About Everyday Health

Everyday Health, Inc., formerly Waterfront Media Inc., operates a digital marketing and communications platform for healthcare marketers that want to engage with consumers and healthcare professionals. The Company’s platform combines content from brands, data and analytics. The Company’s segment is providing digital health marketing and communications solutions. The Company’s flagship brand, Everyday Health, is a health information portal that provides consumers with actionable health information intended to empower users to manage their health and wellness. The Company’s flagship professional property, MedPage Today, includes a team of approximately 30 journalists, including editors, reporters and videographers, and provides clinical news based on research findings published in peer-reviewed medical journals, as well as research reported at various medical conferences around the world.

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