Head-To-Head Comparison: Trip.com Group (NASDAQ:TCOM) vs. Brinker International (NYSE:EAT)

Trip.com Group (NASDAQ:TCOM) and Brinker International (NYSE:EAT) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Trip.com Group	36.07%	16.99%	10.73%
Brinker International	8.39%	122.35%	17.42%

Analyst Recommendations

This is a summary of current recommendations and price targets for Trip.com Group and Brinker International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trip.com Group	2	3	8	1	2.57
Brinker International	0	6	17	1	2.79

Trip.com Group presently has a consensus price target of $61.09, indicating a potential upside of 50.36%. Brinker International has a consensus price target of $243.38, indicating a potential upside of 15.44%. Given Trip.com Group’s higher probable upside, analysts clearly believe Trip.com Group is more favorable than Brinker International.

Institutional & Insider Ownership

35.4% of Trip.com Group shares are owned by institutional investors. 23.0% of Trip.com Group shares are owned by insiders. Comparatively, 1.4% of Brinker International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Trip.com Group has a beta of -0.05, suggesting that its share price is 105% less volatile than the S&P 500. Comparatively, Brinker International has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Earnings & Valuation

This table compares Trip.com Group and Brinker International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trip.com Group	$65.61 billion	0.40	$4.77 billion	$4.85	8.38
Brinker International	$5.81 billion	1.52	$487.00 million	$10.89	19.36

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

Summary

Brinker International beats Trip.com Group on 8 of the 14 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 Brinker International

Brinker International, Inc., together with its subsidiaries, engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally. It operates and franchises Chili's Grill & Bar and Maggiano's Little Italy restaurant brands. The company also operates virtual brands, It's Just Wings. Brinker International, Inc. was founded in 1975 and is headquartered in Dallas, Texas.