Critical Review: IAC/InterActiveCorp (NASDAQ:IAC) versus Integral Ad Science (NASDAQ:IAS)

Integral Ad Science (NASDAQ:IASGet Rating) and IAC/InterActiveCorp (NASDAQ:IACGet Rating) are both mid-cap business services companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.

Analyst Ratings

This is a summary of current recommendations for Integral Ad Science and IAC/InterActiveCorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Integral Ad Science 0 1 7 1 3.00
IAC/InterActiveCorp 0 1 11 0 2.92

Integral Ad Science currently has a consensus target price of $26.44, suggesting a potential upside of 90.80%. IAC/InterActiveCorp has a consensus target price of $171.17, suggesting a potential upside of 67.83%. Given Integral Ad Science’s stronger consensus rating and higher probable upside, analysts plainly believe Integral Ad Science is more favorable than IAC/InterActiveCorp.

Valuation and Earnings

This table compares Integral Ad Science and IAC/InterActiveCorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Integral Ad Science $323.51 million 6.62 -$52.44 million N/A N/A
IAC/InterActiveCorp $3.70 billion 2.31 $597.55 million $6.33 16.11

IAC/InterActiveCorp has higher revenue and earnings than Integral Ad Science.

Profitability

This table compares Integral Ad Science and IAC/InterActiveCorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Integral Ad Science N/A N/A N/A
IAC/InterActiveCorp 15.92% -0.06% -0.04%

Institutional and Insider Ownership

94.6% of IAC/InterActiveCorp shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Integral Ad Science beats IAC/InterActiveCorp on 6 of the 11 factors compared between the two stocks.

Integral Ad Science Company Profile (Get Rating)

Integral Ad Science Holding Corp. operates as a digital advertising verification company in the United States, the United Kingdom, Germany, Italy, Spain, Sweden, Singapore, Australia, France, Japan, Canada, India, and Brazil. The company provides IAS Signal, a cloud-based technology platform that offers actionable insights; and deliver independent measurement and verification of digital advertising across devices, channels, and formats, including desktop, mobile, connected TV, social, display, and video. Its digital media quality solutions offer ad fraud detection and prevention, viewability, brand safety and suitability, contextual targeting, inventory yield management, and reporting. The company offers Quality Impressions, a metric designed to verify that digital ads are served to a real person rather than a bot, viewable on-screen, and presented in a brand-safe and suitable environment in the correct geography; Context Control solution that delivers contextual targeting and brand suitability capabilities; pre-bid programmatic and post-bid verification solutions for advertisers; and optimization and verification solutions for publishers. It serves advertisers and agencies, publishers, advertising/audience networks, and supply side platforms. The company was founded in 2009 and is headquartered in New York, New York.

IAC/InterActiveCorp Company Profile (Get Rating)

IAC is a media and Internet company comprised of some of the world’s most recognized brands and products, such as HomeAdvisor, Vimeo, About.com, Dictionary.com, The Daily Beast, Investopedia, and Match Group’s online dating portfolio, which includes Match, OkCupid and Tinder. Ranked by Fortune magazine’s annual standing of the world’s most admired companies in the Internet Services & Retailing sector for many years, IAC’s family of websites is one of the largest in the world, with over two billion monthly visits reaching users in more than 190 countries. The company is headquartered in the Chelsea neighborhood of New York City and has business operations and satellite offices around the world. In December 2004, Expedia split from IAC as a separate publicly traded company. In December 2011, TripAdvisor spun out from Expedia. In August 2008, IAC split into five separate publicly traded companies. The four spun-off companies were HSN, Ticketmaster, Interval Leisure Group, and Tree.com. IAC’s notable acquisitions include: – 2012: [The About Group](http://www.crunchbase.com/organization/about-com) – 2011: [OkCupid](http://www.crunchbase.com/organization/okcupid) – 2011: [Meetic](htt

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