Expedia (NASDAQ: EXPE) is one of 11 public companies in the “Travel Agents” industry, but how does it compare to its competitors? We will compare Expedia to similar businesses based on the strength of its earnings, valuation, profitability, risk, analyst recommendations, institutional ownership and dividends.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Expedia and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Expedia 0 7 21 1 2.79
Expedia Competitors 86 642 965 43 2.56

Expedia currently has a consensus target price of $160.03, indicating a potential upside of 32.54%. As a group, “Travel Agents” companies have a potential upside of 20.03%. Given Expedia’s stronger consensus rating and higher possible upside, analysts plainly believe Expedia is more favorable than its competitors.

Profitability

This table compares Expedia and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Expedia 4.09% 10.71% 3.52%
Expedia Competitors -18.33% -5,188.00% -11.47%

Valuation and Earnings

This table compares Expedia and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Expedia $8.77 billion $281.84 million 47.72
Expedia Competitors $3.50 billion $239.18 million 13.55

Expedia has higher revenue and earnings than its competitors. Expedia is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Expedia pays an annual dividend of $1.20 per share and has a dividend yield of 1.0%. Expedia pays out 47.4% of its earnings in the form of a dividend. As a group, “Travel Agents” companies pay a dividend yield of 1.1% and pay out 46.2% of their earnings in the form of a dividend. Expedia lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk & Volatility

Expedia has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Expedia’s competitors have a beta of 1.21, meaning that their average share price is 21% more volatile than the S&P 500.

Insider and Institutional Ownership

84.5% of Expedia shares are owned by institutional investors. Comparatively, 75.4% of shares of all “Travel Agents” companies are owned by institutional investors. 21.0% of Expedia shares are owned by insiders. Comparatively, 14.5% of shares of all “Travel Agents” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Expedia beats its competitors on 12 of the 15 factors compared.

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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