Critical Review: Travelport Worldwide Limited (TVPT) vs. Its Competitors
Travelport Worldwide Limited (NYSE: TVPT) is one of 11 public companies in the “Travel Agents” industry, but how does it compare to its rivals? We will compare Travelport Worldwide Limited to similar companies based on the strength of its analyst recommendations, earnings, institutional ownership, valuation, risk, dividends and profitability.
Travelport Worldwide Limited pays an annual dividend of $0.30 per share and has a dividend yield of 2.2%. Travelport Worldwide Limited pays out 41.7% 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. Travelport Worldwide Limited is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.
Volatility & Risk
Travelport Worldwide Limited has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Travelport Worldwide Limited’s rivals have a beta of 1.21, suggesting that their average share price is 21% more volatile than the S&P 500.
This is a summary of recent ratings for Travelport Worldwide Limited and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Travelport Worldwide Limited||0||2||1||0||2.33|
|Travelport Worldwide Limited Competitors||87||646||965||43||2.55|
Travelport Worldwide Limited currently has a consensus price target of $17.25, suggesting a potential upside of 28.73%. As a group, “Travel Agents” companies have a potential upside of 17.35%. Given Travelport Worldwide Limited’s higher probable upside, research analysts plainly believe Travelport Worldwide Limited is more favorable than its rivals.
Insider and Institutional Ownership
92.7% of Travelport Worldwide Limited shares are held by institutional investors. Comparatively, 75.2% of shares of all “Travel Agents” companies are held by institutional investors. 1.2% of Travelport Worldwide Limited shares are held by company insiders. Comparatively, 14.5% of shares of all “Travel Agents” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Travelport Worldwide Limited and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Travelport Worldwide Limited||3.72%||-42.32%||3.96%|
|Travelport Worldwide Limited Competitors||-17.33%||-45.52%||-10.55%|
Valuation & Earnings
This table compares Travelport Worldwide Limited and its rivals gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Travelport Worldwide Limited||$2.35 billion||$16.82 million||18.61|
|Travelport Worldwide Limited Competitors||$3.16 billion||$214.58 million||13.73|
Travelport Worldwide Limited’s rivals have higher revenue and earnings than Travelport Worldwide Limited. Travelport Worldwide Limited is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Travelport Worldwide Limited beats its rivals on 8 of the 15 factors compared.
Travelport Worldwide Limited Company Profile
Travelport Worldwide Limited provides a travel commerce platform, which offers distribution, technology, payment, mobile and other solutions for the travel and tourism industry. The Company connects travel providers, such as airlines and hotel chains with online and offline travel agencies and other travel buyers in its business-to-business (B2B) travel commerce platform (its Travel Commerce Platform). It also provides a range of digital and mobile services that allow airlines, hotels, corporate travel management companies and travel agencies to engage with their customers through mobile services, including applications, corporate booking tools, mobile Web and mobile messaging. Travel Commerce Platform connects travel providers and travel buyers, as well as travel agencies, travel management companies (TMCs) and corporations. As of December 31, 2016, it provided air distribution services to approximately 400 airlines globally, including approximately 125 low cost carriers (LCCs).
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