Head-To-Head Survey: IAC (NASDAQ:IAC) & Icahn Enterprises (NASDAQ:IEP)

Icahn Enterprises (NASDAQ:IEP) and IAC (NASDAQ:IAC) are both mid-cap multi-sector conglomerates companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.

Earnings and Valuation

This table compares Icahn Enterprises and IAC”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Icahn Enterprises	$10.02 billion	0.48	-$445.00 million	($1.23)	-6.80
IAC	$3.81 billion	0.70	-$539.90 million	($5.39)	-6.62

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

Insider & Institutional Ownership

87.1% of Icahn Enterprises shares are held by institutional investors. Comparatively, 88.9% of IAC shares are held by institutional investors. 90.1% of Icahn Enterprises shares are held by company insiders. Comparatively, 16.1% of IAC shares are held by company insiders. 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.

Analyst Recommendations

This is a summary of current ratings and target prices for Icahn Enterprises and IAC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Icahn Enterprises	0	1	0	0	2.00
IAC	0	2	12	0	2.86

IAC has a consensus price target of $47.9231, indicating a potential upside of 34.24%. Given IAC’s stronger consensus rating and higher probable upside, analysts clearly believe IAC is more favorable than Icahn Enterprises.

Volatility & Risk

Icahn Enterprises has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, IAC has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.

Profitability

This table compares Icahn Enterprises and IAC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Icahn Enterprises	-6.78%	-15.65%	-4.06%
IAC	-14.52%	-8.23%	-5.44%

Summary

IAC beats Icahn Enterprises on 8 of the 14 factors compared between the two stocks.

About Icahn Enterprises

Icahn Enterprises L.P., through its subsidiaries, engages in the investment, energy, automotive, food packaging, real estate, home fashion, and pharma businesses in the United States and Internationally. The Investment segment invests its proprietary capital through various private investment funds. This segment provides investment advisory and other related services. The Energy segment refines and markets transportation fuels in the form of gasoline and diesel fuels, as well as renewable diesel; and manufactures nitrogen fertilizers in the form of urea ammonium nitrate and ammonia. The Automotive segment sells automotive parts and materials, and retailed merchandise; offers automotive repair and maintenance services; and leases real estate properties. The Food Packaging segment produces and sells cellulosic, fibrous, and plastic casings that are used to prepare and package processed meat products. The Real Estate segment is involved in the leasing of land, retail, office, and industrial properties; the development and sale of single-family homes; and the operation of country clubs. The Home Fashion segment manufactures, sources, markets, distributes, and sells home fashion consumer products. The Pharma segment offers pharmaceutical products and services. The company was incorporated in 1987 and is headquartered in Sunny Isles Beach, Florida.

About IAC

IAC Inc., together with its subsidiaries, 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/InterActiveCorp. The company is headquartered in New York, New York.