Critical Analysis: Global-e Online (NASDAQ:GLBE) vs. Expedia Group (NASDAQ:EXPE)

Expedia Group (NASDAQ:EXPE) and Global-e Online (NASDAQ:GLBE) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Profitability

This table compares Expedia Group and Global-e Online’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Expedia Group	9.66%	64.15%	6.25%
Global-e Online	0.82%	0.81%	0.59%

Earnings & Valuation

This table compares Expedia Group and Global-e Online”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Expedia Group	$13.69 billion	2.48	$1.23 billion	$10.45	26.48
Global-e Online	$752.76 million	8.24	-$75.55 million	$0.03	1,218.33

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

Volatility & Risk

Expedia Group has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500. Comparatively, Global-e Online has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Expedia Group and Global-e Online, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Expedia Group	0	22	13	1	2.42
Global-e Online	2	0	9	1	2.75

Expedia Group presently has a consensus target price of $290.10, indicating a potential upside of 4.85%. Global-e Online has a consensus target price of $50.09, indicating a potential upside of 37.05%. Given Global-e Online’s stronger consensus rating and higher probable upside, analysts plainly believe Global-e Online is more favorable than Expedia Group.

Institutional and Insider Ownership

90.8% of Expedia Group shares are owned by institutional investors. Comparatively, 94.6% of Global-e Online shares are owned by institutional investors. 9.1% of Expedia Group shares are owned by company insiders. Comparatively, 11.6% of Global-e Online shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Expedia Group beats Global-e Online on 8 of the 14 factors compared between the two stocks.

About Expedia Group

Expedia Group, Inc. operates as an online travel company in the United States and internationally. The company operates through B2C, B2B, and trivago segments. Its B2C segment includes Brand Expedia, a full-service online travel brand offers various travel products and services; Hotels.com for lodging accommodations; Vrbo, an online marketplace for the alternative accommodations; Orbitz, Travelocity, Wotif Group, ebookers, CheapTickets, Hotwire.com and CarRentals.com. The company's B2B segment provides various travel and non-travel companies including airlines, offline travel agents, online retailers, corporate travel management, and financial institutions who leverage its travel technology and tap into its diverse supply to augment their offerings and market Expedia Group rates and availabilities to its travelers. Its trivago segment, a hotel metasearch website, which send referrals to online travel companies and travel service providers from hotel metasearch websites. In addition, the company provides brand advertising through online and offline channels, loyalty programs, mobile apps, and search engine marketing, as well as metasearch, social media, direct and personalized traveler communications on its websites, and through direct e-mail communication with its travelers. The company was formerly known as Expedia, Inc. and changed its name to Expedia Group, Inc. in March 2018. Expedia Group, Inc. was founded in 1996 and is headquartered in Seattle, Washington.

About Global-e Online

Global-E Online Ltd., together with its subsidiaries, provides a platform to enable and accelerate direct-to-consumer cross-border e-commerce in Israel, the United Kingdom, the United States, and internationally. Its platform enables international shoppers to buy online and merchants to sell from, and to, worldwide. The company was incorporated in 2013 and is headquartered in Petah Tikva, Israel.