Analyzing Despegar Com (DESP) & Expedia (EXPE)
Despegar Com (NYSE: DESP) and Expedia (NASDAQ:EXPE) are both cyclical consumer goods & services companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.
Valuation and Earnings
This table compares Despegar Com and Expedia’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Despegar Com||$411.16 million||4.61||$17.79 million||$0.53||53.25|
|Expedia||$8.77 billion||2.22||$281.84 million||$2.53||50.68|
Expedia has higher revenue and earnings than Despegar Com. Expedia is trading at a lower price-to-earnings ratio than Despegar Com, indicating that it is currently the more affordable of the two stocks.
This table compares Despegar Com and Expedia’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Expedia pays an annual dividend of $1.20 per share and has a dividend yield of 0.9%. Despegar Com does not pay a dividend. Expedia pays out 47.4% of its earnings in the form of a dividend.
Institutional & Insider Ownership
72.6% of Despegar Com shares are held by institutional investors. Comparatively, 84.0% of Expedia shares are held by institutional investors. 20.9% of Expedia shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a summary of recent ratings and price targets for Despegar Com and Expedia, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Despegar Com currently has a consensus target price of $35.80, suggesting a potential upside of 26.86%. Expedia has a consensus target price of $159.86, suggesting a potential upside of 24.68%. Given Despegar Com’s higher probable upside, equities research analysts plainly believe Despegar Com is more favorable than Expedia.
Expedia beats Despegar Com on 12 of the 16 factors compared between the two stocks.
Despegar Com Company Profile
Despegar.com Corp is an Argentina-based travel agency. The Company’s activities are divided into two business segments: Air, as well as Packages, Hotels and Other Travel Products. The Air division focuses on the sale of airline tickets. The Packages, Hotels and Other Travel Products division includes sales of travel packages with or without airline tickets and hotel rooms, as well as stand-alone sales of hotel rooms, including vacation rentals, car rentals, bus tickets, cruise tickets, travel insurance and destination services. Its destinations include Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Spain, the United States, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Dominican Republic, Uruguay and Venezuela. The Company operates through a number of subsidiaries in Latin America and the United States.
Expedia Company Profile
Expedia, Inc. is an online travel company. The Company operates through four segments: Core Online Travel Agencies (Core OTA), trivago, Egencia and HomeAway. The Company’s Core OTA segment provides a range of travel and advertising services to its customers across the world, through a range of brands, including Expedia.com and Hotels.com in the United States, and localized Expedia and Hotels.com Websites throughout the world, Orbitz.com, Expedia Affiliate Network, Hotwire.com, Travelocity, Wotif Group, CarRentals.com and Classic Vacations. The Company’s trivago segment sends referrals to online travel companies and travel service providers from its hotel metasearch Websites. Its Egencia segment, which also includes Orbitz Worldwide (Orbitz) for Business, provides managed travel services to corporate customers across the world. The Company’s HomeAway segment operates an online marketplace for the vacation rental industry.
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