Comparing Trip.com Group (NASDAQ:TCOM) and Cielo (OTCMKTS:CIOXY)

Trip.com Group (NASDAQ:TCOM) and Cielo (OTCMKTS:CIOXY) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Risk and Volatility

Trip.com Group has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500. Comparatively, Cielo has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.

Profitability

This table compares Trip.com Group and Cielo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trip.com Group	22.99%	10.73%	5.93%
Cielo	20.28%	14.55%	2.13%

Institutional and Insider Ownership

35.4% of Trip.com Group shares are held by institutional investors. Comparatively, 0.0% of Cielo shares are held by institutional investors. 23.0% of Trip.com Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Trip.com Group and Cielo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trip.com Group	0	2	9	0	2.82
Cielo	0	0	0	0	N/A

Trip.com Group currently has a consensus price target of $61.89, indicating a potential upside of 20.41%. Given Trip.com Group’s higher probable upside, research analysts plainly believe Trip.com Group is more favorable than Cielo.

Valuation & Earnings

This table compares Trip.com Group and Cielo’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trip.com Group	$6.27 billion	5.28	$1.40 billion	$2.22	23.15
Cielo	$2.12 billion	1.31	$418.05 million	$0.16	6.44

Trip.com Group has higher revenue and earnings than Cielo. Cielo is trading at a lower price-to-earnings ratio than Trip.com Group, indicating that it is currently the more affordable of the two stocks.

Summary

Trip.com Group beats Cielo on 11 of the 13 factors compared between the two stocks.

About Trip.com Group

Trip.com Group Limited, through its subsidiaries, operates as a travel service provider for accommodation reservation, transportation ticketing, packaged tours and in-destination, corporate travel management, and other travel-related services in China and internationally. The company acts as an agent for hotel-related transactions and selling air tickets, as well as provides train, long-distance bus, and ferry tickets; travel insurance products, such as flight delay, air accident, and baggage loss coverage; and air-ticket delivery, online check-in and seat selection, express security screening, real-time flight status tracker, and airport VIP lounge services. It also provides independent leisure travelers bundled packaged-tour products comprising group, semi-group, and customized and packaged tours with various transportation arrangements, including air, cruise, bus, and car rental services. In addition, the company offers integrated transportation and accommodation services; destination transportation and ticket, activity, insurance, visa, and tour guide services; user support, supplier management, and customer relationship management services; and in-destination products and services. Further, It provides its corporate clients with business visit, incentive trip, meeting and conference, travel data collection and analysis, and industry benchmarking solutions; and Corporate Travel Management System, an online platform that integrates information management, online booking and authorization, online inquiry, and travel reporting systems. Additionally, the company offers online advertising and financial services, such as marketing planning and travel media services. It operates under the Ctrip, Qunar, Trip.com, and Skyscanner brands. The company was formerly known as Ctrip.com International, Ltd. and changed its name to Trip.com Group Limited in October 2019. Trip.com Group Limited was founded in 1999 and is based in Singapore.

About Cielo

Cielo S.A., through its subsidiaries, provides payment services in Brazil and the United States. The company provides services related to credit and debit cards, and other payment methods, including signing up of merchants and service providers; rental, installation, and maintenance of point-of-sale terminals; and data capture and processing of electronic and manual transactions, as well as the issuance and management of payment accounts. It also offers services related to the processing means of payments that involve cards, maintenance services, and contacts with merchants for acceptance of credit and debit cards; development and licensing of computer software; electronic transactions processing; and technology services for collection and management of accounts payable and receivable using the Internet. The company was formerly known as Companhia Brasileira de Meios de Pagamento and changed its name to Cielo S.A. in December 2009. Cielo S.A. was founded in 1995 and is headquartered in Barueri, Brazil.