Expedia (EXPE) and TripAdvisor (TRIP) Head to Head Analysis
Expedia (NASDAQ: EXPE) and TripAdvisor (NASDAQ:TRIP) are both mid-cap retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.
Earnings and Valuation
This table compares Expedia and TripAdvisor’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Expedia||$9.45 billion||2.31||$1.19 billion||$2.11||68.22|
|TripAdvisor||$1.53 billion||3.68||$200.00 million||$0.66||61.41|
Expedia has higher revenue and earnings than TripAdvisor. TripAdvisor is trading at a lower price-to-earnings ratio than Expedia, indicating that it is currently the more affordable of the two stocks.
Expedia pays an annual dividend of $1.20 per share and has a dividend yield of 0.8%. TripAdvisor does not pay a dividend. Expedia pays out 56.9% of its earnings in the form of a dividend.
This is a summary of current recommendations and price targets for Expedia and TripAdvisor, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Expedia currently has a consensus price target of $163.52, indicating a potential upside of 13.60%. TripAdvisor has a consensus price target of $43.07, indicating a potential upside of 6.26%. Given Expedia’s stronger consensus rating and higher probable upside, equities analysts plainly believe Expedia is more favorable than TripAdvisor.
Risk & Volatility
Expedia has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, TripAdvisor has a beta of 2.37, suggesting that its stock price is 137% more volatile than the S&P 500.
Insider & Institutional Ownership
84.4% of Expedia shares are held by institutional investors. Comparatively, 86.2% of TripAdvisor shares are held by institutional investors. 20.9% of Expedia shares are held by company insiders. Comparatively, 1.1% of TripAdvisor shares are held 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.
This table compares Expedia and TripAdvisor’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Expedia beats TripAdvisor on 10 of the 17 factors compared between the two stocks.
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.
TripAdvisor Company Profile
TripAdvisor, Inc. owns and operates a portfolio of online travel brands. TripAdvisor, the Company’s brand, is a travel site. The Company operates through two segments: Hotel and Non-Hotel. The Company’s Hotel segment includes click-based advertising and transaction; display-based and subscription-based advertising, and other hotel operations. The Non-Hotel segment includes Attractions, Restaurants and Vacation Rentals businesses. The Company’s platform also enables users to compare real-time pricing and availability for these experiences, as well as to book hotels, flights, cruises, vacation rentals, tours, activities and attractions, and restaurants, on either a TripAdvisor site or application, or a travel partner site or application. As of December 31, 2016, the Company’s TripAdvisor-branded Websites included tripadvisor.com in the United States and localized versions of the TripAdvisor Website in 48 markets and 28 languages around the world.
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