IAC/InterActiveCorp (NASDAQ:IAC) & System1 (NYSE:SST) Critical Review

IAC/InterActiveCorp (NASDAQ:IACGet Rating) and System1 (NYSE:SSTGet Rating) are both industrial products companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, earnings, profitability and analyst recommendations.

Insider and Institutional Ownership

94.6% of IAC/InterActiveCorp shares are owned by institutional investors. 11.5% of IAC/InterActiveCorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for IAC/InterActiveCorp and System1, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IAC/InterActiveCorp 0 1 11 0 2.92
System1 0 0 0 0 N/A

IAC/InterActiveCorp presently has a consensus price target of $169.50, indicating a potential upside of 76.65%. System1 has a consensus price target of $26.00, indicating a potential upside of 24.52%. Given IAC/InterActiveCorp’s higher possible upside, equities analysts clearly believe IAC/InterActiveCorp is more favorable than System1.

Profitability

This table compares IAC/InterActiveCorp and System1’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IAC/InterActiveCorp 15.92% -0.06% -0.04%
System1 N/A -34.77% 4.06%

Earnings & Valuation

This table compares IAC/InterActiveCorp and System1’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IAC/InterActiveCorp $3.70 billion 2.17 $597.55 million $6.33 15.16
System1 N/A N/A $21.03 million N/A N/A

IAC/InterActiveCorp has higher revenue and earnings than System1.

Risk & Volatility

IAC/InterActiveCorp has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, System1 has a beta of -0.35, suggesting that its stock price is 135% less volatile than the S&P 500.

Summary

IAC/InterActiveCorp beats System1 on 9 of the 10 factors compared between the two stocks.

About IAC/InterActiveCorp (Get Rating)

IAC/InterActiveCorp operates as a media and internet company worldwide. The company publishes original and engaging digital content in the form of articles, illustrations, and videos and images across entertainment, food, home, beauty, travel, health, family, luxury, and fashion areas; and magazines related to women and lifestyle. It also operates a digital marketplace that connects home service professionals with consumers for repairing, remodeling, cleaning, landscaping, maintenance, and enhancement services under the Angi Ads, Angi Leads, and Angi Services brands. In addition, the company operates websites that offer general search services and information, including Ask.com, a search site with a variety of fresh and contemporary content; Reference.com that offers content across select vertical categories; Consumersearch.com, which offers content designed to simplify the product research process; and Shopping.net, a vertical shopping search site that contains a mix of search services and/or content targeted to various user or segment demographics, as well as offers direct-to-consumer downloadable desktop applications. Further, it offers Care.com, an online destination for families to connect with caregivers for their children, aging parents, pets, and homes; develops and provides subscription mobile applications across the communication, language, weather, business, health, and lifestyle verticals; a technology driven staffing platform for flexible W-2 work under the Bluecrew name; a platform to connect healthcare professionals with job opportunities under the Vivian Health name; The Daily Beast, a website dedicated to news, commentary, culture, and entertainment that publishes original reporting and opinion; and production and producer services for feature films for sale and distribution through theatrical releases and video-on-demand services. The company was formerly known as IAC HOLDINGS, INC. IAC/InterActiveCorp is headquartered in New York, New York.

About System1 (Get Rating)

System1, Inc. develops technology and data science to operate responsive acquisition marketing platform. The company also operates a real-time coupon code search engine and directory that offers coupon destinations for online shoppers. It serves customers in the areas of health, subscription, finance, insurance, business and technology, travel, auto, and other direct-to-consumer businesses. The company was founded in 2013 and is based in Los Angeles, California.

Receive News & Ratings for IAC/InterActiveCorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for IAC/InterActiveCorp and related companies with MarketBeat.com's FREE daily email newsletter.