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Price comparison site faces tough competition and trades on lofty valuation

In its first quarter update (20 Apr) online price comparison business Moneysupermarket.com (MONY) says it helps customers cut their motor and home insurance and energy bills by £1,000 on average. It says this equates to the same after tax as a £1,470 pay rise.

Should you put any of this extra cash into Moneysupermarket shares? Liberum says not: ‘We remain cautious as revenue growth is heavily dependent on marketing spend and MoneySupermarket remain expensive relative to other internet portals.’

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