Financial Review: IAC/InterActiveCorp (IAC) & Star Group (SGU)

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IAC/InterActiveCorp (NASDAQ:IAC) and Star Group (NYSE:SGU) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
IAC/InterActiveCorp 11.39% 15.84% 8.14%
Star Group 1.56% 15.74% 6.55%

Institutional and Insider Ownership

86.8% of IAC/InterActiveCorp shares are held by institutional investors. Comparatively, 43.8% of Star Group shares are held by institutional investors. 10.9% of IAC/InterActiveCorp shares are held by company insiders. Comparatively, 20.4% of Star Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for IAC/InterActiveCorp and Star Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IAC/InterActiveCorp 1 2 16 0 2.79
Star Group 0 0 0 0 N/A

IAC/InterActiveCorp currently has a consensus target price of $231.09, indicating a potential upside of 7.01%. Given IAC/InterActiveCorp’s higher probable upside, research analysts plainly believe IAC/InterActiveCorp is more favorable than Star Group.

Volatility & Risk

IAC/InterActiveCorp has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Star Group has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IAC/InterActiveCorp $3.31 billion 5.45 $304.92 million $5.59 38.63
Star Group $1.68 billion 0.29 $55.50 million N/A N/A

IAC/InterActiveCorp has higher revenue and earnings than Star Group.

Dividends

Star Group pays an annual dividend of $0.47 per share and has a dividend yield of 5.0%. IAC/InterActiveCorp does not pay a dividend.

Summary

IAC/InterActiveCorp beats Star Group on 11 of the 13 factors compared between the two stocks.

About IAC/InterActiveCorp

IAC/InterActiveCorp, together with its subsidiaries, operates as a media and Internet company in the United States and internationally. It operates through Match Group, ANGI Homeservices, Video, Applications, and Publishing segments. The Match Group segment provides subscription dating products, which enable users to establish a profile and review the profiles of other users in 42 languages. The ANGI Homeservices segment owns and operates the HomeAdvisor digital marketplace, which matches consumers with service professionals for home repair, maintenance, and improvement projects; and Angie's List that connects consumers with service professionals for local services through an online directory of service professionals in approximately 700 service categories, as well as provides consumers with tools, services, and content, including reviews of local service professionals. The Video segment operates a video sharing platform, which provides creators with professional tools to host, manage, review, distribute, and monetize videos online. It also offers creators with professional live streaming capabilities, as well as a live video solution; and creators with production hardware, tools, and services for capturing, broadcasting, and editing live events. The Applications segment develops, markets, and distributes various applications, primarily browser extensions. It also provides software and services that clean, repair, update, secure, and optimize computers, mobile phones, and digital devices; and customized browser-based search applications. The Publishing segment publishes digital content and/or offers search services. Its brands include Dotdash, Dictionary.com, Investopedia, The Daily Beast, Ask.com, and CityGrid. The company was formerly known as InterActiveCorp. IAC/InterActiveCorp was founded in 1986 and is headquartered in New York, New York.

About Star Group

Star Group, L.P. operates as a home heating oil and propane distributor and services provider in the United States. It also installs, maintains, and repairs heating and air conditioning equipment, as well as offers plumbing services. As of September 30, 2018, the company sold home heating oil and propane to approximately 454,000 full service residential and commercial customers. It also sells home heating oil, gasoline, and diesel fuel to approximately 74,000 customers on a delivery only basis. Kestrel Heat, LLC operates as the general partner of the company. The company was formerly known as Star Gas Partners, L.P. and changed its name to Star Group, L.P. in October 2017. Star Group, L.P. was founded in 1995 and is headquartered in Stamford, Connecticut.

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