Head-To-Head Contrast: Expedia (EXPE) and The Competition
Expedia (NASDAQ: EXPE) is one of 11 public companies in the “Travel Agents” industry, but how does it weigh in compared to its peers? We will compare Expedia to related companies based on the strength of its valuation, institutional ownership, analyst recommendations, risk, earnings, dividends and profitability.
Expedia pays an annual dividend of $1.20 per share and has a dividend yield of 1.0%. Expedia pays out 47.4% 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. Expedia lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.
This is a summary of current recommendations and price targets for Expedia and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Expedia currently has a consensus price target of $160.03, suggesting a potential upside of 33.05%. As a group, “Travel Agents” companies have a potential upside of 18.39%. Given Expedia’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Expedia is more favorable than its peers.
Volatility and Risk
Expedia has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Expedia’s peers have a beta of 1.20, suggesting that their average share price is 20% more volatile than the S&P 500.
This table compares Expedia and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
82.9% of Expedia shares are owned by institutional investors. Comparatively, 75.2% of shares of all “Travel Agents” companies are owned by institutional investors. 20.9% of Expedia shares are owned by insiders. Comparatively, 17.5% of shares of all “Travel Agents” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Expedia and its peers revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Expedia||$8.77 billion||$281.84 million||47.54|
|Expedia Competitors||$3.50 billion||$239.18 million||13.51|
Expedia has higher revenue and earnings than its peers. Expedia is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Expedia beats its peers on 12 of the 15 factors compared.
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.
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